This Method of Financing Government Spending Is Frequently Called Printing

question 46

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)The finance of 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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