The Central Bank Is Said to Monetize the Deficit When

question 57

Multiple Choice

The central bank is said to monetize the deficit when it

• A)prints Federal Reserve notes to satisfy the increased demand for money.
• B)sells government bonds from its own portfolio of government securities.
• C)requires member banks to buy the bonds to finance the deficit.
• D)purchases the bonds that the government issues.

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Definitions:

Woodrow Wilson

The 28th President of the United States, who served from 1913 to 1921, known for leading the country during World War I and advocating for the League of Nations.

Federal Troops

Military forces deployed by a federal government, often used to maintain order, defend national interests, or enforce laws and decisions.

Wobblies

A nickname for members of the Industrial Workers of the World (IWW), an international labor union founded in 1905, known for its radical labor activism.

Samuel Gompers

An American labor leader and the first president of the American Federation of Labor, who promoted organized labor and labor rights in the late 19th and early 20th centuries.