Which Statement Best Describes the Effect of Printing Money to Finance

question 18

Multiple Choice

Which statement best describes the effect of printing money to finance government expenditures on the Canadian economy?

• A) It accounts for 10 percent of government revenue.
• B) It accounts for less than 1 percent of government revenue.
• C) Printing money imposes a tax on net borrowers.
• D) Printing money causes the nominal interest rate to decrease.

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Definitions:

Cognitive Skills

These are the mental abilities that encompass learning, thinking, reasoning, problem-solving, memory, decision-making, and attention.

Pretests

Initial assessments or tests conducted before an intervention or experiment to establish a baseline for comparing post-test outcomes.

Attrition Effects

The impact on research findings from participants dropping out of a study over time, potentially biasing the results.

Generalize

To generalize means to make a broad statement or rule that applies beyond the original context, based on observations from specific examples.