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.