The Argument That Budget Deficits Are Inflationary Is

question 147

Multiple Choice

The argument that budget deficits are inflationary is

• A)always correct.
• B)correct only when the deficit is monetized.
• C)correct only when the aggregate supply curve is horizontal.
• D)correct only when the aggregate supply curve is upward sloping.

---

Definitions:

Limited Partners

Limited partners are investors in a partnership with limited liability to the debts of the partnership, and whose involvement in management is restricted by law.

General Partner

An owner of a partnership who has unlimited personal liability for the debts and obligations of the partnership.

Limited Liability Limited Partnership

A form of partnership that offers limited liability to some partners (limited partners) and allows others (general partners) to operate the partnership with limited liability as well.

General Partners

Individuals in a partnership who are responsible for managing the business and are personally liable for its debts.