<u>Answer:</u>
If the government deficit is not financed by increased bond holdings by the public, the monetary base and money supply will increase.
Option: (B)
<u>Explanation:</u>
- The monetary base is the total amount of coins and notes present in the head bank of a country and the money supply is the total amount of its own currency present in it’s reserve.
- Whenever a bond (loan) is given to the public, it decreases the currency reserve.
- To maintain a stable economy, the monetary base and money supply must be balanced as these are dependent on the supply of goods and services.
- Also, this requires timely payment of 'bond holdings' by the public.
They call them as lobbyists. A lobbyist is a paid activist that often persuades government officials to enact bills that would benefit their group. A lobbyist also reviews laws and regulations whether they are good for the constituents. They are also one representing the sovereign people during important sessions.
