Which of the Following Represents Debt Monetization

question 42

Multiple Choice

Which of the following represents debt monetization?

• A)an increase in the budget deficit that is financed by money creation
• B)an increase in the budget deficit that is financed by foreigner investors' purchases of domestic bonds
• C)an increase in the budget deficit that coincides with a central bank sale of bonds
• D)an open market purchase of bonds that results in inflation
• E) none of the above

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