Why Might the Fed Decide to Monetize the Deficit

question 72

Multiple Choice

Why might the Fed decide to monetize the deficit?

• A)to keep inflation low 
• B)to reduce the structural deficit 
• C)to reduce the budget deficit 
• D)to keep interest rates low

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Definitions:

Tone

The general character or attitude of a piece of writing, situation, or speech, or the pitch and strength of a sound.

Conditioned Stimulus

A previously neutral stimulus that, after association with an unconditioned stimulus, elicits a conditioned response.

Buzzer

A device that produces a buzzing sound, often used as a signal or alarm.

Unconditioned Response

A spontaneous and inherent response to a stimulus that happens without previous learning or conditioning.