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The public debt of an economy reached approximately $25 billion. The current real GDP is approximately $20 billion. One option for debt repayment for this

The public debt of an economy reached approximately $25 billion. The current real GDP is approximately $20 billion. One option for debt repayment for this economy central bank is to create new money and then pay debt holders as needed. What will be the effect of this option on long run inflation in this economy?

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