If the private sector is not willing to purchase government bonds being issued to finance a deficit, and the government's only option is to print more money, then this will likely cause
A) a weak stock market.
B) a lower dollar value.
C) inflation.
D) a run on borrowing.

Question

Quizplus · Accepted Answer

Printing more money without the backing of actual economic growth in the country can lead to an increase in the money supply and a decrease in its value, causing inflation. This can lead to higher prices for goods and services, which can also reduce the purchasing power of consumers and lead to economic instability.

If the Private Sector Is Not Willing to Purchase Government