Under what circumstance(s) will budget deficits lead to inflation? Answer a. Whe

Question

Under what circumstance(s) will budget deficits lead to inflation? Answer a. When the Treasury Department issues bonds, which are subsequently purchased by the Fed to keep interest rates from rising. b. When the Treasury issues bonds to finance the deficit. c. When the Fed sells bonds to finance the deficit. d. When the government "prints" money. Under what circumstance(s) will budget deficits lead to inflation? When the Treasury Department issues bonds, which are subsequently purchased by the Fed to keep interest rates from rising. When the Treasury issues bonds to finance the deficit. When the Fed sells bonds to finance the deficit. When the government "prints" money. a. When the Treasury Department issues bonds, which are subsequently purchased by the Fed to keep interest rates from rising. b. When the Treasury issues bonds to finance the deficit. c. When the Fed sells bonds to finance the deficit. d. When the government "prints" money.

Explanation / Answer

d is the answer

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