When a government has a large budget deficit, it must issue government bonds to finance the deficit.

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When a government has a large budget deficit, it must issue government bonds to finance the deficit. Explain if it matters for the rate of inflation if the government sells the bonds to the public or sells the bonds to the central bank?

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Government and Not for Profit Accounting Concepts and Practices

ISBN: 978-1118983270

7th edition

Authors: Michael Granof, Saleha Khumawala, Thad Calabrese, Daniel Smith

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Posted Date: Feb 23, 2024 01:21 AM

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When a government has a large budget deficit, it must issue government bonds to finance the deficit.

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Yes it does matter for the rate of inflation whether the government sells b... View the full answer

Government and Not for Profit Accounting Concepts and Practices

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