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Question 4 (2 points) In the past, some governments' budget deficits became so large that they could not raise sufficient taxes to finance the spending,
Question 4 (2 points)
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 ________.
Question 4 options:
A) reduced the amount of currency held by the public; a smaller money supply | |
B) increased bank reserves; a larger reserve/deposit ratio | |
C) printed large quantities of paper money; hyperinflation | |
D) ordered the central bank to sell government bonds; an increase in the money supply |
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