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Explain How Financing a Persistent Deficit by Money Creation Will

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Essay

Explain how financing a persistent deficit by money creation will lead to a sustained inflation.


Definitions:

Tariff

A tax imposed by a government on imported goods to protect domestic industries or raise revenue.

Domestic Market

The market within a country where goods and services are traded domestically.

Trade Restrictions

Government-imposed limitations on the free exchange of goods and services between countries, including quotas, tariffs, and embargoes.

Semiconductor Industry

The semiconductor industry includes companies involved in the design, manufacture, and supply of semiconductors, which are essential components for electronic devices.

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