In Actual Practice, Does the Fed Monetize the Debt

question 7

Multiple Choice

In actual practice, does the Fed monetize the debt?

• A)No, it did not do so even with large deficits in the 1980s and early 2000s.
• B)No longer, although it monetized much of the deficit in the 1980s.
• C)Yes, although it monetizes less now than in the 1980s.
• D)Yes, it has monetized the deficit steadily since the early 1970s.

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Definitions:

Extraterrestrial

Originating, existing, or occurring outside the Earth or its atmosphere.

Photosynthetic Bacteria

Bacteria that produce their own food through photosynthesis, using light energy to convert carbon dioxide and water into glucose.

Chloroplast

Organelles in plant and algal cells where photosynthesis takes place, converting light energy into chemical energy.

Organelle

One of the specialized structures within the cell, such as the mitochondria, Golgi complex, ribosomes, or contractile vacuole; many organelles are membrane-enclosed.