Question 14
Governments have become increasingly indebted around the world,
coinciding with a period of historically low interest rates. (i)
Discuss the connection between deficits, debt and inflation. (ii)
Do you think the large fiscal deficits currently run by various
governments may result in further inflation?
60 marks
Question 14 Governments have become increasingly indebted around the world, coinciding with a period of historically low
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