The most common type of macroeconomic imbalance is overly expansionary fiscal policies that create large government budget deficits,often financed by a high growth rate of the money supply.

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Overly expansionary fiscal policies that create large government budget deficits, often financed by a high growth rate of the money supply, are indeed the most common type of macroeconomic imbalance. This can lead to inflation, currency devaluation, and other negative consequences.

The Most Common Type of Macroeconomic Imbalance Is Overly Expansionary