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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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