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There have been times when the federal government has kept pumping fiscal stimulus into the economy when it was already growing vigorously and did not
"There have been times when the federal government has kept pumping fiscal
stimulus into the economy when it was already growing vigorously and did not
need the boost. The result was__________."
a) higher taxesb) higher inflation
c) higher unemploymentd) more discouraged workers
The answer is b
My question is that, as the fiscal policy brings budget deficit, how can it leads to a inflation
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