Change in money supply by monetary policy

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Reference no: EM13836919

If government’s expenditure (G) is greater than its tax revenues (Tx) government is said to be running a __________. If there is not change in money supply by monetary policy then this can be remedied by_______________

A. Surplus, buying up government bonds issued in the past.

B. Deficit, selling bonds to the central bank thereby decreasing public debt.

C. Deficit, buying bonds from the public and by making the central bank print less money.

D. Deficit, selling bonds to the public

Reference no: EM13836919

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