Solved: Governments increase the money supply too rapidly because, Business Management

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Governments increase the money supply too rapidly because

1. "Governments increase the money supply too rapidly because it enables them to finance an expanding government sector without increasing taxes or borrowing from the economy's savings"

a) What is the drawback of this policy choice?

b) What is meant by borrowing from the economy's savings?

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Business Management: Governments increase the money supply too rapidly because

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