If the Deficit Is Financed by Selling Bonds to the ________,The

question 72

Multiple Choice

If the deficit is financed by selling bonds to the ________,the money supply will ________,causing aggregate demand to ________.

• A)public;rise;increase
• B)public;fall;decrease
• C)central bank;rise;increase
• D)central bank;fall;decrease

Identify the role of opportunity cost in economic decisions.

Understand how market failure can affect economic efficiency.

Appreciate the impact of incentives on individual and collective decision-making.

Realize the importance of trade and specialization in improving economic outcomes.

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Definitions:

Change Fund

A set amount of money used for making change in cash transactions, typically reserved in a cash register.

Cash Register

A mechanical or electronic device used for registering and calculating transactions at a point of sale.

Cash Receipts

The collection of money, typically recorded during the period in which it is received.

Cash Sales

Transactions where payment is made in cash at the time of sale, as opposed to credit sales where payment is deferred.