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.