What Is One Reason Why a Government Will Deliberately Inflate

question 24

Multiple Choice

What is one reason why a government will deliberately inflate its national money supply?

• A) The action promotes the long-term health of the national economy.
• B) The action is part of efforts to attract overseas investors and immigrant labor.
• C) The action is part of printing money to pay off the government's debts.
• D) The action tamps down the growth rate of an overheated economy.
• E) The action helps the money supply keep up with the consequences of rising prices.

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