In countries that have experienced hyperinflation, what role have large government budget deficits played in causing the very high inflation rates?
What will be an ideal response?
The large government budget deficits lead to the massive increases in the money supply necessary to generate the hyperinflation. The public, especially in the developing world, will not buy the government bonds necessary to finance the large budget deficits. The central bank has had to purchase the government bonds, which has sent the money supply through the roof, leading to hyperinflation.
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An individual's payment into Social Security is kept in his or her account so that the individual retirement benefit he or she receives is drawn from that account
Indicate whether the statement is true or false
The difference between the sale value of the product and the value of the inputs that went into it is called the:
A. value-added of that stage of production. B. profit margin. C. mark up. D. value of the final product.