How might a government budget deficit lead to inflation?
What will be an ideal response?
Answer: Instead of financing the deficit by raising taxes or issuing debt, the government may choose to print money. The expansion in the supply of money without a corresponding increase in the demand for money will cause inflation.
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Indicate whether the statement is true or false
A retail store prices its goods to achieve a gross margin of 35 percent. Up to the date of a fire that destroyed the store's inventory, sales were $250,000 and cost of goods available for sale was $175,000. The estimated cost of the inventory destroyed is
A) $12,500. B) $43,750. C) $62,500. D) $75,000.
Short reports typically cover topics with a limited
A) Financial impact. B) Impact on the company. C) Timeframe. D) All of the above.
Optimal capital structure "first" criteria suggests that THE IMPACT ON EPS should be ________ and that the best way to obtain that is with ________ levels of debt and ________ levels of equity
A) high; low; high B) low; high; low C) high; high; low D) low; low; high