This Method of Financing Government Spending Is Frequently Called Printing

question 47

Multiple Choice

This method of financing government spending is frequently called printing money because high-powered money (the monetary base) is created in the process.

• A)financing government spending with taxes
• B)financing government spending through a Treasury sale of bonds that are then purchased by the Fed
• C)financing government spending by selling bonds to the public,which pays for the bonds with currency
• D)financing government spending by selling bonds to the public,which pays for the bonds with checks

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Definitions:

Conscientiousness

A personality trait characterized by organization, dependability, and a strong sense of duty.

Agreeableness

A personality trait characterized by warmth, friendliness, and a cooperative attitude towards others.

Internal Locus

A belief that one has control over one's life and outcomes through one's own efforts, abilities, and actions.

Volleyball

A team sport in which two teams of six players are separated by a net, with each team trying to score points by grounding a ball on the other team's court.