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    Exam 19: Quantity Theory, inflation and the Demand for Money
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    If the Government Finances Its Spending by Selling Bonds to the Central
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If the Government Finances Its Spending by Selling Bonds to the Central

Question 97

Question 97

Multiple Choice

If the government finances its spending by selling bonds to the central bank,the monetary base will ________ and the money supply will ________.


A) increase;increase
B) increase;decrease
C) decrease;decrease
D) not change;not change

Correct Answer:

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