If the Government Fiscal Deficit Equals $190 Million, Government Borrowing

question 13

Multiple Choice

If the government fiscal deficit equals $190 million, government borrowing equals $60 million, what is the change in the money supply equal to?

• A) $250 million
• B) $190 million
• C) $130 million
• D) $120 million
• E) $60 million

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Definitions:

Renewed

Made new or refreshed again.

Discharged Debt

A debt that has been deemed paid or settled, releasing the debtor from further obligations.

Primary Effect

The direct and immediate results of an action or policy, as opposed to its secondary or indirect effects.

Overdue Debts

Money owed that has not been paid by the agreed-upon due date, often subject to additional fees or penalties.