If the deficit is financed by selling bonds to the ________,the money supply will ________,increasing aggregate demand,and leading to a rise in the price level.
A)public;rise
B)public;fall
C)central bank;rise
D)central bank;fall

Question

Quizplus · Accepted Answer

When the central bank buys bonds, it increases the money supply, which can boost aggregate demand and lead to higher price levels.

If the Deficit Is Financed by Selling Bonds to the ________,The