If the Government Deficit Is Financed by an Increase in Bond

question 41

Multiple Choice

If the government deficit is financed by an increase in bond holdings by the public ________.

• A) there is no effect of the monetary base
• B) there is no effect on the money supply
• C) the money supply increases
• D) A and B only

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Definitions:

Full-Time Job

Employment in which an individual works a minimum number of hours defined by their employer, usually equating to the majority of the workweek.

Predetermined Hours

Set hours or a schedule established in advance, typically relating to work or tasks that need to be completed within those times.

Compressed Workweek

An alternative work schedule that allows employees to work fewer days but longer hours per day, covering a standard work week's total hours.

10-Hr Days

A work schedule that consists of a ten-hour period of labor or professional activity, typically applied to a four-day workweek.