Which of the following occurs when a government increases money supply?

Question

Quizplus · Accepted Answer

When a government increases money supply, it becomes easier for banks to borrow from the government. This is because the banks will have more money available to them, which they can use to lend out to individuals and companies. This can help to stimulate economic growth and increase overall liquidity in the financial system. However, if the money supply increases too rapidly, it can also lead to inflation as demand for goods and services exceeds supply.

Which of the Following Occurs When a Government Increases Money