Which of the Following Would Lead to a Rapid Growth

question 166

Multiple Choice

Which of the following would lead to a rapid growth of the money supply in the future?

• A)the use of large excess reserves by banks to extend additional loans
• B)a reduction in government expenditures to reduce the size of the federal deficit
• C)an increase in government expenditures financed by taxes
• D)an increase in the interest rate the Fed pays banks holding excess reserves

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The use of more words than necessary in written material, which can lead to decreased readability and reader engagement.

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A set of circumstances or a scenario in which one finds oneself; a state of affairs.

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