Which Statement Best Describes the Effect of Printing Money to Finance

question 68

Multiple Choice

Which statement best describes the effect of printing money to finance government expenditures on the economy?

• A) Printing money causes the value of money to rise.
• B) Printing money imposes a tax on everyone who holds money.
• C) Printing money increases the real interest rate.
• D) Printing money lowers the velocity of money.

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Definitions:

Hyperactive Reflexes

An increased reflex response that may indicate an underlying nervous system disorder.

Cerebrovascular Accident

Medical terminology for a stroke, a condition arising from the interruption or reduction of blood supply to the brain, leading to neurological deficits.

Weakness

Weakness is the lack of physical or muscular strength, or the feeling of being unable to exert force or perform physical tasks as usual.

Spastic Hemiparesis

A condition characterized by weakness or paralysis (paresis) on one side of the body accompanied by involuntary muscle contractions (spasticity).