A government raises its budget deficit in order to fund spending on infrastructure development. It pays for this by creating money. How is this policy likely to influence the government’s principal macroeconomic policy objectives?
- Ahigher economic growth: less likely / lower unemployment: less likely / lower inflation: more likely
- Bhigher economic growth: less likely / lower unemployment: more likely / lower inflation: less likely
- Chigher economic growth: more likely / lower unemployment: more likely / lower inflation: less likely
- Dhigher economic growth: more likely / lower unemployment: more likely / lower inflation: more likely