1.6 Which of the following will cause the demand curve for money to shift to the right? (a) An increase in real Gross Domestic Product (GDP). (b) A decrease in the repo rate. (c) An increase in the quantity of money available. (d) A decrease in the quantity of money available. Q.1.7 A budget deficit occurs when: (a) there is an increase in taxation. (b) government spends less than is generated by taxation. (c) government spending is very high. (d) Government spends more than is generated by taxation.

1.6 Which of the following will cause the demand curve for money to shift to the right? (a) An increase in real Gross Domestic Product (GDP). (b) A decrease in the repo rate. (c) An increase in the quantity of money available. (d) A decrease in the quantity of money available. Q.1.7 A budget deficit occurs when: (a) there is an increase in taxation. (b) government spends less than is generated by taxation. (c) government spending is very high. (d) Government spends more than is generated by taxation.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Money Growth And Inflation

Section: Chapter Questions

Problem 1CQQ

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