Deficits That Arise from Discretionary Fiscal Policy Lead To

question 88

Multiple Choice

Deficits that arise from discretionary fiscal policy lead to:

• A)increased private demand for money,which is offset by the sale of more government securities.
• B)decreased private demand for money,which is offset by the sale of more government securities and higher interest rates
• C)increases in the number of government securities sold to the public and higher interest rates.
• D)decreases in the number of government securities sold to the public and higher interest rates.
• E)increases in the public's demand for money and increases in the number of government securities sold to the public,leading to lower interest rates.

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