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Can Financing expansionary fiscal policy by increasing the deficit does not generally affect interest rates or inflation?
Wiki User
∙ 14y ago
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.
Wiki User
∙ 14y ago
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What should be a future effect upon the economy if a expansionary fiscal policy continues in an economy with an increasing budget deficit and growing national debt?
high inflation
Why is inflation increasing in india day by day?
Inflation is increasing day by day because of corruption in politics
What are the links between inflation and the economy?
on increasing inflation economy growth decreases
How can low inflation be achieved?
Low inflation can be achieved by increasing interest rates to tempt people to save more and also by increasing taxes to reduce peoples disposable income.
A long-run effect of increasing the money supply can be inflation?
true
What should be a future effect upon the economy if a expansionary fiscal policy continues in an economy with an increasing budget deficit and growing national debt?
high inflation
How did financing the war lead to inflation?
What war?
Why is inflation increasing in india day by day?
Inflation is increasing day by day because of corruption in politics
What are the links between inflation and the economy?
on increasing inflation economy growth decreases
How can low inflation be achieved?
Low inflation can be achieved by increasing interest rates to tempt people to save more and also by increasing taxes to reduce peoples disposable income.
Why is the inflation rate increasing in Malaysia?
Corruption Paternalizational economic policies
A long-run effect of increasing the money supply can be inflation?
true
Why would an expansionary gap lead to a change in inflation Why would a recessionary gap lead to a change in inflation?
Assuming that the aggregate demand curve does not move, the only way for the gap to be closed is by a shift in aggregate supply. These gaps cause a change in inflation expectations, moving the AS curve left (exp) or right (rec) back to long term equilibrium and changing the inflation rate.
When economy is moving in recession process demand is increasing supply is decreasing prices are increasing than what is that type of inflation?
I think you're referring to a so called Running Inflation. Check the link for more information.
What is it called when all of the prices go up during a recession?
Inflation?
Does Japan has a low inflation rate?
Inflation in Japan is negative, Japan had deflation. Meaning the cost of everything is falling, rather than increasing.
What influences government spending?
the macroeconomic objectives being pursued by the government will greatly influence government spending . a government aiming to reduce employment and promote economic growth is likely to pursue an expansionary fiscal policy , thus increasing government spending where as a government aiming to control inflation is likely to follow a contractions policy thus reducing its spending.
