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What else can I help you with?
How did financing the war lead to inflation for the Americans?
It lead to inflation for the Americans because, as their army grew, they needed more supplies for the soldiers, and the price on weapons went up. You could say there was a tax put on the weapons.
Beyond certain point deficit financing will certainly lead to?
inflation, b) deflation c) recession d) economic stagnation
How did World War 1 reparations lead to inflation and instability in the German government?
A German guy asassinated another German person which became a spark of the war.
Why was there a inflation during the Revolutionary War?
During the revolution, the U.S. started printing lots of money to pay for the war, since the federal government couldn't levy taxes due to the laws laid out by the Articles of Confederation. Lots of available money leads to inflation.
Why were the Germans punished after WW1?
They were blamed for starting the war and all the damaged that happened in the war. The treaty of Versailles ordered to pay for all the damages, which lead to Germany going into Hyper Inflation
Will inflation lead to change in demand?
Will inflation lead to change in demand? Inflation is defined as the rise of prices in goods and services in a society. Therefore inflation and demand are strongly depended on each other. Supposedly the inflation grows over a period of time, the demands would effect the different levels in society by a equivalent decrease and vice versa.
what are the causes of running inflation?
Demand Pull Inflation , where demand increased from supply
Can inflation and employment happen at the same time?
A rise in unemployment will lead to a fall in inflation...this is best explained by the philips curve
Was inflation a big problem during the revolutionary war?
Inflation was a big problem for Americans during the Revolution
Can Financing expansionary fiscal policy by increasing the deficit does not generally affect interest rates or inflation?
Expansionary fiscal policy or running the printing presses usually causes inflation. Sometimes it causes hyperinflation. It caused both the inflation and interest rate to rise to 20% under the Carter administration.
How did the severe punishment to Germany at the end of World War I contribute to World War 2?
The reparations Germany was required to pay after World War 1 contributed to the hyper inflation that existed in the Wiemar Republic of Germany that coupled with the Great depression lead to the rise of Dictatorships in Germany and Italy. And with Hitlers rise to power lead the world into World War 2.
Can to much economic growth lead to inflation?
No. They are not functions of one another.
