Issuing Money to Finance Budget Deficits

question 92

Multiple Choice

Issuing money to finance budget deficits:

• A)increases the resources consumed by both the government and the private sector.
• B)increases the resources consumed by the government but does not change the resources consumed by the private sector.
• C)increases the resources consumed by the government and thereby leaves fewer resources for the private sector.
• D)does not increase the resources consumed by either the government or the private sector.

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