Inflation is commonly the result of a: Group of answer choices large budget deficit high level of interest rates high level of unemployment high level of aggregate demand
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If a nation has high and persistent inflation, the most likely explanation is Group of answer choices unions bargaining for excessively high wages. firms using their market power to enforce excessive price hikes the central bank creating excessive amounts of money. the government imposing excessive levels of taxation.
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Multiple Choice Question.... Which statement is a major consequence of high government budget deficits? A) All else held constant, high budget deficits financed by borrowing will lead to lower interest rates. B) If the government finances the deficit by borrowing money, it can crowd out business investment. C) Budget deficits cause unemployment as firms relocate to countries with balanced budgets. D) Printing money to finance the deficit can lead to a significantly deflationary environment.
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