Answer to Question #16184 in Economics of Enterprise for a n m

Question #16184
Which of the following would cause a growth in the money supply? If your answer is ‘possibly’ explain the circumstances under which the answer would be ‘yes’. (a) The selling of government securities to banks. . Yes / No / Possibly (b) A fall in interest rates. Yes / No / Possibly (c) An increase in government expenditure, financed by borrowing from the banking sector. Yes / No / Possibly (d) A cut in taxes. Yes / No / Possibly (e) The purchase of government securities by the Reserve Bank from the banking sector. Yes / No / Possibly (f) It is agreed by the Treasurer and the Governor of the Reserve Bank to reduce the target rate of inflation Yes / No / Possibly (g) GDP rises and there is an upward-sloping money supply curve (with respect to interest rates). Yes / No / Possibly
Expert's answer
a) No
b) Yes
c) Yes
d) Yes
e) No
f) No
g) Yes

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