Which of the Following Occurs When a Government Increases Money

question 21

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.

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Definitions:

Supply Chains

Networks of individuals, organizations, resources, activities, and technology involved in the creation and sale of a product, from the delivery of source materials from the supplier to the manufacturer, and eventually to the end user.

Comparative Advantage

An economic theory that refers to the ability of any given economic actor to produce goods and services at a lower opportunity cost than other economic actors.

Absolute Advantage

The ability of an entity to produce a good or service more efficiently than its competitors, using fewer resources.

Global Trade

The exchange of goods, services, and finances between countries and territories, overcoming geographical limitations.