The Relationship Between the Government Deficit and the Change in the Monetary

question 24

Multiple Choice

The relationship between the government deficit and the change in the monetary base is

• A)deficit equals change in government debt held by the public minus change in monetary base.
• B)deficit equals change in government debt held by the public plus change in monetary base.
• C)deficit equals change in government debt outstanding plus change in monetary base.
• D)deficit equals change in government debt outstanding minus change in monetary base.

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