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There are three important causes of inflation. The first and most important cause may be excessive government spending. For example, in order to __1__ a war or __2__ social programs, the government may spend more money than it has received through taxes and other revenue, thus creating a deficit. In order to __3__ this deficit, the Treasury Department can simply __4__ the money supply by issuing more paper money to return the debts of the government. This increase in the money supply will cause the value of the dollar to __5__ decrease. The second cause of inflation will occur when the money supply increases faster than the supply of goods. If people have more money, they will run out to buy popular goods like television and computers, for example, and a shortage will be the result, industry will then produce more, at higher prices, to __6__ the demand, __7__ if people think that the prices of popular goods are going up, they will buy and even borrow money at high __8__ rates to pay for them. Finally, if labor unions demand that workers’ wages __9__ to suit the high cost of living, industry will meet this demand and add other costs of production on the __10__. Of these three causes, excessive government spending may be the most important.

问题1选项
A.pay
B.finance
C.rouse
D.provide
问题2选项
A.carry off
B.carry away
C.carry out
D.carry over
问题3选项
A.accomplish
B.offset
C.compensate
D.achieve
问题4选项
A.expand
B.extend
C.expend
D.offend
问题5选项
A.excessively
B.automatically
C.approximately
D.appropriately
问题6选项
A.supply
B.imply
C.occupy
D.meet
问题7选项
A.Otherwise
B.Hence
C.However
D.Moreover
问题8选项
A.interests
B.interested
C.interesting
D.interest
问题9选项
A.increase
B.be increased
C.are increased
D.will be increased
问题10选项
A.employer
B.manager
C.employee
D.consumer
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