The Most Likely Explanation for Why the U

The most likely explanation for why the U.S. government was not worried about the growth in deficits caused by expansionary policy was they:

A) wanted inflation to occur in order to wipe out the value of government debt.
B) knew they could pass significant tax increases to manage the deficit.
C) expected that the economy would grow out of the deficit.
D) wanted to make the dollar exchange rate favorable compared to the Yuan.

Correct Answer:

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