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

---

Definitions:

Classical Conditioning

A method of pairing in learning where two stimuli are habitually associated; over time, the response originally from the second stimulus comes to be from the first stimulus alone.

Reinforcement

A principle in behavior theory in which a behavior is strengthened or made more likely to occur in the future by consequences that follow it.

Secondary Reinforcer

A stimulus that gains its reinforcing capability through its association with a primary reinforcer, such as money or praise.

Disequilibrium Principle

A concept in learning and education suggesting that learning occurs when an individual encounters cognitive conflict or disequilibrium, prompting adaptation and new learning to restore balance.