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How does financing a budget deficit affect the centralbank's monetarypolicy? Financing a budget deficit______. A. results in the central bank increasing the quantity of money

How does financing a budget deficit affect the centralbank's monetarypolicy?

Financing a budget deficit______.

A.

results in the central bank increasing the quantity of money

B.

does not directly affect the centralbank's purchases and sales of government securities

C.

determines the target the central bank sets for theshort-term interest rate

D.

results in the central bank decreasing the quantity of money

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