Question
An increasein governemtn expenditure in increasing GDP when it is financed by:
a) rasing taxes
b) slling governemtn bonds to the general public
c) selling governemtn bonds to the central bank
d) selling government bonds to the commercial banks
e) both c and d
The right answer is c but I don't know why. Could someone please explain it? Thanks!!
a) rasing taxes
b) slling governemtn bonds to the general public
c) selling governemtn bonds to the central bank
d) selling government bonds to the commercial banks
e) both c and d
The right answer is c but I don't know why. Could someone please explain it? Thanks!!