An increase in the money supply can reduce the probability of financial distress by
A)directly increasing the funds available to households and businesses.
B)lowering the prices of U.S. Treasury securities.
C)allowing the federal government to reduce its budget deficit.
D)raising stock prices and the value of liquid financial assets.

Question

Quizplus · Accepted Answer

The Answer of An increase in the money supply can reduce the probability of financial distress by
A)directly increasing the funds available to households and businesses.
B)lowering the prices of U.S. Treasury securities.
C)allowing the federal government to reduce its budget deficit.
D)raising stock prices and the value of liquid financial assets.

An Increase in the Money Supply Can Reduce the Probability