Only When Budget Deficits Are Financed by Money Creation Does

question 107

Multiple Choice

Only when budget deficits are financed by money creation does the increased government spending lead to ________ in the ________.

• A)a decrease;monetary base
• B)an increase;monetary base
• C)a decrease;money multiplier
• D)an increase;money multiplier

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Definitions:

Ability to Relax

The capacity or skill of being able to rest, unwind, and reduce stress effectively.

Hostile

Showing or feeling opposition or dislike; unfriendly or antagonistic.

Sympathetic Nervous System

A branch of the autonomic nervous system responsible for activating the body's fight-or-flight response during stressful situations.

Alarm Stage

The initial stage of the stress response, where the body recognizes a threat and prepares to face it or flee.