If the Government Has Large Budget Deficits That Cannot Be

question 58

Multiple Choice

If the government has large budget deficits that cannot be financed by borrowing, the government:

• A) prints more money, causing inflation and hyperinflation.
• B) prints less money, causing inflation and hyperinflation.
• C) collects less taxes, causing inflation and hyperinflation.
• D) collects more taxes, causing inflation and hyperinflation.

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Definitions:

Mechanic

A skilled worker responsible for repairing and maintaining machinery, vehicles, and other equipment.

Exemption Clause

A provision in a contract that limits or eliminates one party's liability for certain acts or omissions.

Illegal Restraint

Actions or practices that unlawfully restrict an individual's freedom of movement or personal liberty.

Act Of God

An event caused by natural forces beyond human control, such as floods or earthquakes, that is not attributable to human actions.