Which one of the following is likely to be the most inflationary in its effect? (a) Repayment of public debt
Which one of the following is likely to be the most inflationary in its effect?
(a) Repayment of public debt
(b) Borrowing from the public to finance a budget deficit
(c) Borrowing from banks to finance a budget deficit
(d) Creating new money to finance a budget deficit
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(d) Extremely high rates of inflation are generally associated with high rates of money growth. It is often the result of financing large deficits by printing money
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