Budget deficits can lead to inflation if:
A. crowding out occurs.
B. the government monetizes the deficit.
C. the debt to GDP rises.
D. government borrowing pushes up interest rates.
Answer:B
Budget deficits can lead to inflation if:
A. crowding out occurs. B. the government monetizes the deficit. C. the debt to GDP rises. D. government borrowing pushes up interest rates.