Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 30 - Part X - Money Growth and Inflation - Quick Check Multiple Choice - Page 655: 4

Answer

b. deficit, expansion

Work Step by Step

In a budget deficit, tax revenue cannot cover all government spending, so the government can print more money. This is called monetary expansion, but if it occurs too rapidly, it will cause hyperinflation.
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