Multiple Choice
The economy in the nation of Sponeto has been stagnant for a long time.The government and central bank of Sponeto have been considering options for what can be done to help stimulate investment and growth in the economy. The Sponeto national bank advocates increasing the money supply to encourage investment within the country.Which of the following,if true,would strengthen the case that this will cause inflation?
A) Jobs will be created.
B) Banks will lower interest rates.
C) Wages will decrease.
D) Foreign investment will be discouraged.
E) Only low-technology sectors will benefit.
Correct Answer:
Verified
Correct Answer:
Verified
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