Poor fiscal and monetary policies of a nation's central bank can cause which of the following?

Question

Quizplus · Accepted Answer

Poor fiscal and monetary policies can cause high rates of inflation, increasing budget deficits, and flagging innovation. High rates of inflation occur when the central bank prints too much money, leading to a decrease in the value of the currency. Increasing budget deficits occur when the central bank does not manage government spending and tax revenue effectively. Flagging innovation occurs when the central bank does not support investment in research and development or provide opportunities for entrepreneurship. Therefore, all of the above choices are correct.

Poor Fiscal and Monetary Policies of a Nation's Central Bank