Issuing Money to Finance Budget Deficits

Multiple Choice

Issuing money to finance budget deficits:

A) increases the resources consumed by both the government and the private sector.
B) increases the resources consumed by the government but does not change the resources consumed by the private sector.
C) increases the resources consumed by the government and thereby leaves fewer resources for the private sector.
D) does not increase the resources consumed by either the government or the private sector.