If the government deficit is not financed by increased bond holdings by the public: A. the monetary base falls, but due to exc
ess reserves, the money supply rises. B. the monetary base and the money supply decrease. C. the monetary base and the money supply increase. D. there is no effect on the monetary base or the money supply
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 'bondholdings' by the public.
Jacquie is most likely to ask questions that have a more personal approach instead of going for a societal approach regarding this matter. Infidelity is a personal subject and it is more related to behavior and couple's dynamics than major societal issues such as laws, local culture, and so on.
The first state was Delaware which ratified the U.S. Constitution first. It took 10 months for the U.S. Constitution to be ratified first. Rhode Island was the last one to ratify the U.S. Constitution.
