Economics

• Government intervention through fiscal policies such as tax cuts or public expenditure programs can lead to inflation if not managed properly.
• Open market operations involve buying or selling government securities on the secondary market to increase or decrease the money supply.
• Deflation occurs when prices fall over time due to decreased demand or excess production capacity.
• Government spending can lead to inflation if it exceeds tax revenue or borrowing capacity.
• Inflation can be caused by excessive government spending, which leads to increased demand for goods and services.
• Inflation refers to the general increase in prices over time.
• Money supply can be decreased through open market operations, where central banks sell government bonds back into the market, reducing the amount of money in circulation.