Some IMF economists argue that higher inflation rates might be good if

QUESTION

Some IMF economists argue that higher inflation rates might be good if the consequence is greater growth in aggregate demand.

Indicate whether the statement is true or false.

ANSWER

TRUE
Some economists in the International Monetary Fund are now arguing that higher inflation rates might be a good thing, if the consequence is greater growth in aggregate demand, which would help to pull nations out of recessionary conditions.