222k views
9 votes
If the economy is in an inflationary gap and the government attempts to balance the budget, the effect will be to

User Unnknown
by
4.4k points

1 Answer

8 votes

Answer:

To cover budget imbalances, governments borrow money

Step-by-step explanation:

A government's national debt grows every time it borrows money.

User Shani Shalgi
by
3.6k points