What Is One Reason Why a Government Will Deliberately Inflate

question 124

Multiple Choice

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

• A) The action benefits retirees and anyone else on a fixed income.
• B) The action promotes the interests of domestic producers at the expense of foreign ones.
• C) The action enables the government to borrow funds to remain in operation.
• D) The action temporarily boosts the growth rate of a sluggish economy.
• E) The action helps to keep inflation under control in the long run.

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Definitions:

Overglaze Enamel

A decorative technique used in ceramics where a layer of enamel is applied over an already fired and glazed piece, and then refired to fuse the enamel to the surface.

Qing Dynasty

The last imperial dynasty of China, ruling from 1644 to 1912, known for its expansion of Chinese territory and development of a distinct Chinese culture.

Underglaze Color

A ceramic technique where color is applied to pottery before it is glazed, allowing for intricate designs and vibrant colors that are protected by the final glaze coat.

Suzhou

Suzhou, known as the "Venice of the East," is a city in eastern China famed for its classical gardens, canals, silk industry, and deep cultural heritage spanning over millennia.