Which of the Following Occurs When a Government Increases the Money

Multiple Choice

Which of the following occurs when a government increases the money supply?

A) It results in an overall decrease in credit.
B) It makes it difficult for individuals and companies to borrow from banks.
C) It makes it easier for banks to borrow from the government.
D) It causes a decrease in demand for goods and services.
E) It causes price deflation as the money supply exceeds goods and services output.