Economic stabilisation goals can be conflicting in that:
A)reducing national debt levels may not induce overseas investment to the nation.
B)economic prosperity may not be balanced in the nation.
C)increasing deficits nearly always results in higher interest payments.
D)an increase in the rate of economic growth can lead to higher rates of inflation.

Question

Quizplus · Accepted Answer

Increasing the rate of economic growth can stimulate demand for goods and services, which may lead to higher prices due to increased consumption. This can cause inflationary pressures and may require measures such as raising interest rates to counterbalance it. Therefore, the goal of economic stabilisation through increased growth can conflict with the goal of controlling inflation.

Economic Stabilisation Goals Can Be Conflicting in That