In which circumstance will an increase in the public sector deficit not lead to an increase in the money supply other things being equal?

অন্যান্য
Banking System of Bangladesh

প্রশ্নঃ In which circumstance will an increase in the public sector deficit not lead to an increase in the money supply other things being equal?

  • ক. The deficit is financed by an increase in government borrowing from private individuals
  • খ. The rate of interest is held constant
  • গ. There is large-scale unemployment
  • ঘ. Commercial bank lending to the private sector is held constant

সঠিক উত্তরঃ

The deficit is financed by an increase in government borrowing from private individuals
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Banking System of Bangladesh