Would fiscal policy makers ever have reason to worry about potentially inflationary conditions?

A. Yes, higher inflation leads to a higher debt service burden and increases the costs of financing deficit spending.

B. No, policy makers view potential inflation as a positive for the economy, as it increases demand on the most liquid assets such as Treasury bonds.

C. Yes, if people expect higher potential inflation, it increases spending and causes M1 and M2 to increase too rapidly.

D. No, fiscal policy makers have enough policy instruments available to them to stave off or contain inflation.