Financing a Budget Deficit by ______ Leads to Inflation, and Inflation

question 88

Multiple Choice

Financing a budget deficit by ______ leads to inflation, and inflation ______ the real value of government debt.

• A) issuing debt; increases
• B) issuing debt; decreases
• C) printing money; increases
• D) printing money; decreases

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Definitions:

Empirically

Referring to knowledge or conclusions derived from observation, experimentation, or measurement rather than theory or pure logic.

Organizing

The act of arranging or structuring elements in a systematic way for efficiency and order.

Retrospective Sense Making

Weick’s view of how people construct rational accounts of organizational behavior after the fact—“how do I know what I think until I see what I say?”

Rational Accounts

Explanations or narratives provided to justify actions or decisions based on reason, logic, and rationality.