In the past, some governments' budget deficits became so large that they could not raise sufficient taxes to finance the spending, so they ________, which led to ________.
A. printed large quantities of paper money; hyperinflation
B. reduced the amount of currency held by the public; a smaller money supply
C. increased bank reserves; a larger reserve/deposit ratio
D. ordered the central bank to sell government bonds; an increase in the money supply
Answer: A
Economics
You might also like to view...
The 19th Amendment:
A. establishes the right to bear arms. B. guaranteed women the right to vote. C. outlawed slavery. D. made sales of alcohol illegal.
Economics
Which of the following is the worst-case scenario for a consumer?
a. Perfect competition b. Perfect price discrimination c. Single-price monopoly d. Peak load pricing
Economics