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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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The other stages are storage and retrieval. The storage stage is related to how long, how well and how a given event interacts with other events in one's life. The last stage is the retrieval stage which is when we try to remember a given stuation.

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Marat540 [252]

Answer:

correct option is D raise the fed funds rate by 0.5% if inflation rises 1% above its target of 2%

Explanation:

solution

Taylor Rule is invented in 1992 and it is interest rate forecasting model

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I believe the correct answer is low self-control.

 

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<span>Baby Joe "has developed a sense of self-awareness".</span>

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