Question

The president of the island nation of Winstone refuses to raise taxes, but wants to expand many government services and increase the size of Winstone's armed forces. He plans to pay for all of the desired expenditures by printing more money. If the president carries out his plan by rapidly increasing the supply of money, Winstone will likely experience ___________.

Answer 1

Answer:

A high inflation rate

Explanation:

Inflation is defined as the persistent increase in the price goods and services.

An increase in the supply of money invariably increases the price of goods and services, at this point, there's more money in circulation and the this would cause the price of goods and services to hike up.

Answer 2

Answer:

The president of the island nation of Winstone refuses to raise taxes, but wants to expand many government services and increase the size of Winstone's armed forces. He plans to pay for all of the desired expenditures by printing more money. If the president carries out his plan by rapidly increasing the supply of money, Winstone will likely experience an increase in the rate of inflation..

Explanation:

In economics, inflation is a rise in general level of prices of goods and sevices in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services.In broad sense, inflation is that state in which the prices of goods and services rise on the one hand and value of money falls on the other.

Now as iin the given scenario, The president of island nation refuses to raise taxes,but wants to expand many government services and increase the size of Winstone's armed forces. He plans to pay for all of the desired expenditures by printing more money. If the president carries out his plan by rapidly increasing the supply of money, Winstone will likely experience an increase in the rate of inflation.