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Over [174]
3 years ago
11

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
Social Studies
1 answer:
Lyrx [107]3 years ago
6 0

<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.

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I think the answer to this is B.

A) this could've been the correct answer because they are being run by a dictator of a president and they don't have enough government power to impeach him.

C) Like i said in A, they have a dictator as a president so there is no way C is the correct answer.

D) North Korea doesn't really have enough businesses they mostly do military stuff because of the stuff going around in the world. 

C is the correct answer because they have a president who is spending their money on missile tests, building more weapons and all that bad stuff.

Hoped this helped :)
Have a good day 
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iogann1982 [59]

The statement that  could explain the shift from S1 to S2 is: C.) The cost of a necessary resource in producing the good increased.

<h3>Shift in Supply curve from S1 to S2?</h3>

Shift in Supply curve from S1 to S2 occur due to different factors. When there is Shift in Supply curve from S1 to S2 this means that some changes has occur to both demand and supply of the product in the market.

Shift in Supply curve  can occur when their increase in the price of goods and service.

Therefore the correct option is C.

Learn more about Shift in Supply curve from S1 to S2 here:brainly.com/question/11850982

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