By ________ its deficit, the government makes an anti-inflationary policy ________ credible.

Name: By ________ its deficit, the government makes an anti-inflationary policy ________ credible.
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Question

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By reducing its deficit, the government is decreasing the amount of money it needs to borrow, which reduces the overall money supply, making it less likely for inflation to occur. This makes the government's anti-inflationary policy more credible because it is taking action to address the issue.

By ________ Its Deficit, the Government Makes an Anti-Inflationary Policy