​According to Classical economists, which type of fiscal policy financing produc

Economics
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According to Classical economists, which type of fiscal policy financing produces inflation?

a.    financing with higher taxes
b.    financing with true borrowing
c.    financing with monetized debt
d.    financing with real goods and services
Aug 16th, 2015

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The answer is (d) where by inccreased demand for goods and services by government leads to expansionary fiscal policy leading to inflation.

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Aug 16th, 2015

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