The Term Seigniorage Refers to

question 30

Multiple Choice

The term seigniorage refers to

• A)the difference between the actual budget deficit and the inflation adjusted deficit
• B)the difference between money supply and the monetary base
• C)the government's ability to raise tax revenue by creating money
• D)the fact that a government that defaults on its debt will not face severe consequences
• E)the substitution of another country's currency as a medium of exchange in order to stop hyperinflation

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Definitions:

Externality

A term in economics that describes a cost or benefit that affects a party who did not choose to incur that cost or benefit.

Internality-Externality

A psychological dimension that distinguishes between individuals who attribute outcomes to their own control (internality) and those who attribute them to external forces (externality).

Locus of Control

Locus of control is a psychological concept that refers to individuals' belief about the extent to which the outcomes of their actions are under their own control (internal locus) or influenced by external factors (external locus).

Reinforcement Contingency

Reinforcement contingency is a term in behavioral psychology that refers to the relationship between a behavior and its consequence, emphasizing that a behavior must be followed by a reinforcement for the behavior to be increased.