13. Read the following 'Beginning" and "Ending" of this story BEGINNING: Once upon a time in the Land of Fataway, King Big Debt was spending big bucks on a new castle and moat. He needed more money fast, So, he went to the town square, stood on his favorite soapbox and announced be was selling government bonds or G-Bills. "Why should we buy these bonds? The crowd yelled. King Big pledged, "I will pay good interest 8%, okay, I will pay you 10% and the bonds are as secure as you currency!" People lined up to buy G Bills . They were a better deal than the Faraway Bank or the Up and Down Stock market", Kng big continued to borrow and borrow until .... Now read the ENDING The King had a bright idea. He would print up some money!! So, he ordered the Royal Central Bank to buy all the G-Bills and Credit his account so that he could pay his bills. With all the money earned in government projects, the town went on a buying apree. Shops were bustling and shopkeepers couldn't keep up with orders. It wasn't long before prices in Faraway went up, up, up. Coach prices soared and castles were soon out of reach ofyour Farawayans. Inflaion had come to Faraway. The ending above represents an outcome predicted by which of the following principles? A.Keynesian Theory B.Crowding Out C.External Debt D.Monetizing tho debt 14 Crowding out causes A. the mpc to ncresse b. the mps to increase C the interest rates to decrease D.none of the above 15. Examnple of an uncontrollable is a. Spending on the Iraq War b. Spending on transportation c. Interest payment on Treasury Bills at the maturity date D. A and C