Which of the following is t regarding the effect of deficits from 1980-2005 in the U.S.?

Question

Quizplus · Accepted Answer

The statement "They did not lead to substantial inflation because the Fed did not monetize the deficits" is true as the Fed did not print a lot of new money to finance government spending, which would have increased the money supply and led to inflation. This is consistent with the idea that deficits themselves do not necessarily cause inflation but rather how they are financed that determines their impact.

Which of the Following Is T Regarding the Effect of Deficits