Day: June 21, 2022

Which method of financing a government deficit will leave the money supply unchanged?

Select ONE answer:

1. the sale of government securities to the central bank
2. the sale of government securities to the commercial banks
3. the sale of government securities to domestic residents
4. the sale of government securities to overseas residents

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct
4. Not correct

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