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r carry 4 social programs, the government may spend more money than it has received through taxes and other 5 , thus creating a deficit. Insgroupsto 6 this deficit, the Treasury Department can simply 7 t he money supply by issuing more paper money to return the debts of government. T his increase in the money supply will cause the value of the dollar to 8 decrease. The second cause of inflation will occur when the money supply 9 faster than the supply of goods. 10 people have more money, they will run out to buy popular goods like televisions and computers, for example, and a 11 will b e the result. Industry will then produce more, at higher prices, to 12 the demand. 13 , if people think that the pr ices of popular goods are 14 , they will buy and even borr ow money at high 15 rates to pay for them. Finally, if labor unions demand that workers¬ðwages 16 to suit the high cost of living, industry will meet this demand and add other 17 of production on the 18 . In summary, all of the se causes can 19 inflationary problems that can affect the welfare of a nation. However, 20 these three causes, excessive government spending may be the most important.
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