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March 27, 2017

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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!!

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