When the Treasury borrows from the non-bank public and makes an expenditure of an equal amount, the money supply
A) rises by a multiple of the expenditure.
B) rises by an amount equal to the expenditure.
C) rises by an amount less than the expenditure.
D) is unaffected.
D
Economics
You might also like to view...
What is the distinction between gross investment and net investment?
What will be an ideal response?
Economics
Increasing a tariff will ________ the domestic quantity consumed of the good, while ________ the domestic production of the good
A) increase; increasing B) increase; decreasing C) decrease; increasing D) decrease; decreasing
Economics