Monetizing the Deficit Occurs When

question 10

Multiple Choice

Monetizing the deficit occurs when:

• A) banks buy more treasury bills from the US Treasury.
• B) banks lend more dollars to the central bank.
• C) the central bank prints more money because the private sector's money demand has increased.
• D) the central bank purchases newly issued government bonds.

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Definitions:

At-Will Employees

Employees who can be dismissed by an employer for any reason (that is not illegal) and without warning, as long as the reason is not illegal.

Gift Promises

A declaration by an individual to transfer ownership of an item to another without the exchange of payment.

Legality

The state of being in accordance with the law; legality refers to conformity with statutes and regulations.

Consideration

In contract law, something of value exchanged between parties that is essential for a valid and enforceable contract.