Answer:
The correct answer is Option "b. The value of the currency would increase"
Explanation:
The government through the central bank can adopt a variety of measures to control the amount of money supply in the economy. The state uses a combination of monetary and fiscal policies to this effect.
In the given example, the federal government would not print more money due to the implications it has not only on the value of the currency but also on other macroeconomic variables such as interest rates and inflation.
By printing money, there would be an excess amount of money supply in the economy. That would make each dollar in the economy worth less than what it was before. This puts downward pressure on interest rates and boosts inflation as well.
Due to higher inflation, a greater amount of money would be required to continue with normal business which would again cause the need to further increase money supply. Using the law of simple demand and supply, the value of money would keep lowering as money supply is kept increasing. This is why a government might elect to not print money.
True is the correct answer to this question
Explanation:
Point-wise explanation is given below:
i) The anti-defection law was introduced to curb the growing trend of elected representatives who changed political parties to become ministers or to get cash rewards.
ii) The affidavit requirement was an order passed by the Supreme Court as a measure to curb the challenge of money and muscle power.
iii) The third reform measure was made by the Election Commission where for all political parties it was mandatory to hold regular elections and also file their income tax returns.
<u><em>Besides these, many suggestions are often made to reform political parties:</em></u>
iv) It should be made mandatory for political parties to give a minimum number of tickets, about one-third, to women candidates. Similarly, there should be a quota for women in the decision-making bodies of the party.
v) There should be state funding of elections. The government should give parties money to support their election expenses. This support could be given in kind: petrol, paper, telephone etc. Or it could be given in cash on the basis of the votes secured by the party in the last election.
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Answer:
should be true,Hope that helps.
A is the answer (: hope this helps