Which of the Following Occurs When a Government Increases the Money

question 45

Multiple Choice

Which of the following occurs when a government increases the money supply?

• A)It results in an overall decrease in credit.
• B)It makes it difficult for individuals and companies to borrow from banks.
• C)It makes it easier for banks to borrow from the government.
• D)It causes a decrease in demand for goods and services.
• E)It causes price deflation as the money supply exceeds goods and services output.

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Definitions:

Synesthesia

A condition in which one sense is simultaneously perceived by one or more additional senses. For example, seeing colors when hearing music.

Cones

Photoreceptor cells in the retina of the eye responsible for color vision and function best in relatively bright light.

Rods

Photoreceptor cells in the retina of the eye that are sensitive to low light levels and play a key role in night vision.

Specialized Cells

Cells that have developed unique structures and functions to perform specific tasks within an organism, such as nerve or muscle cells.