If the Government Borrows Funds to Finance a Military Build-Up

question 99

Multiple Choice

If the government borrows funds to finance a military build-up, this will cause a

• A) shift in the demand for funds.
• B) shift in the supply of funds.
• C) shift in monetary policy.
• D) shift in open-market operations.

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Definitions:

Cardiovascular

Relating to the heart and blood vessels and their functions in circulating blood throughout the body.

Negative Feedback

A regulatory mechanism in which a stimulus causes an opposite output in order to maintain an ideal level of whatever is being regulated.

Effector

A muscle, gland, or organ that responds to a stimulus from the nervous system by producing a specific effect or action.

Receptor

Structural protein or glycoprotein molecule on the cell surface or within the cytoplasm that binds to a specific factor (chemical signal).