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.
The amazon river :) Hope I helped
<span>Any relevant issues relating to being a teenager. Simone will reflect her peers ideas on boys, friendships, behaviour and more. Her parents guidance will not be relevant even though they are the most suitable for the task because at that age you do not want to be like your parents. You feel rebellious and different and your peers have more in common with you.</span>
Answer:
The original intent of Dutch colonization was to find a path to Asia through North America, but after finding the fur trade profitable, the Dutch claimed the area of New Netherlands The goals of both the French and Dutch revolved around the fur trade.
Explanation:
