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Finances Government Spending Quiz

The demand pull inflation illustrated in Figure 27-4 is due to

The continuous increase in aggregate demand illustrated in Figure 27-4 is the result of

The continuous increase in aggregate supply illustrated in Figure 27-4 is the result of

Methods of financing government spending are described by an expression called the government budget constraint, which states the following:

Methods of financing government spending are described by an expression called the government budget constraint, which states the following:

If the government finances its spending by issuing debt to the public, the monetary base will ________ and the money supply will ________.

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

Financing government spending with taxes

Financing government spending by selling bonds to the public, which pays for the bonds with currency,

The financing of government spending by issuing debt

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