In Which Case Would You Be Most Likely to Expect

question 67

Multiple Choice

In which case would you be most likely to expect inflation to occur?

• A)The government runs a sustained government deficit by lowering taxes.
• B)The government runs a sustained government deficit by increasing purchases.
• C)The government runs a sustained primary deficit by increasing purchases.
• D)The government funds its sustained deficit by increasing the money supply.

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Definitions:

Duty

A moral or legal obligation; in legal terms, it often refers to the responsibility one party has to act in a certain way toward others.

Federal Register

The official journal of the federal government of the United States, where government agencies publish notices, rules, and regulations.

Proposed Rule

An official suggestion for a new regulation or amendment to existing regulations, usually published for public comment before adoption.

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