If the Deficit Is Financed by Selling Bonds to the ________,The

question 72

Multiple Choice

If the deficit is financed by selling bonds to the ________,the money supply will ________,causing aggregate demand to ________.

• A)public;rise;increase
• B)public;fall;decrease
• C)central bank;rise;increase
• D)central bank;fall;decrease

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Definitions:

Implied Assumption

An unstated understanding or expectation inherent in a situation or agreement.

Known Risk

A hazard or risk that is identified or anticipated before an activity or decision is made.

Plaintiff

The party who initiates a lawsuit by making a complaint against another party, called the defendant, in a court of law.

Strict Liability

A legal doctrine that holds a party responsible for their actions or products, regardless of fault or intent.