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11. A regime change is a change in: A. one aspect of government policy. B. monet

ID: 1116080 • Letter: 1

Question

11. A regime change is a change in: A. one aspect of government policy. B. monetary policy. C. fiscal policy. D. the entire atmosphere within which the government and the economy interact. countries typically: A. buy the bonds issued by the government and increase the money supply in the process. B. buy the bonds issued by the government and decrease the money supply in the process. C. sell the bonds issued by the government and increase the money supply in the process. D. sell the bonds issued by the government and decrease the money supply in the process.

Explanation / Answer

11) Correct Option is D, Regime change means new government, new government policies, new fiscal policies, new atmosphere for businesses, investors, work conditions, thus the entire atmosphere within which the government and and the economy interact.

12) Correct Option is D, Central bank in order to fulfil internal borrowings of government will sell government bonds and thus decrease the money supply in process.