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To Jumpstart Its Slow Economy, Greece Increased the Money Supply

Question 43

Multiple Choice

To jumpstart its slow economy, Greece increased the money supply. What is a likely consequence of this action?


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.

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