Which of the Following Occurs When a Government Increases Money

question 34

Multiple Choice

Which of the following occurs when a government increases 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:

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The study of heredity and the variation of inherited characteristics.

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The knowledge or practical wisdom gained from what one has observed, encountered, or undergone.

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The process of causing a lesion or damage to the tissue, especially in the brain, as a way of studying its functions or treating disorders.