________ Prevent(s) Governments from Being Tempted to Use Seignorage Excessively

question 37

Multiple Choice

________ prevent(s) governments from being tempted to use seignorage excessively.

• A) Gold reserves
• B) The power of bond markets
• C) The government budget constraint
• D) Future generations
• E) Central bank independence

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Definitions:

Amygdala

A region of the brain involved in experiencing emotions, particularly those related to survival, such as fear and aggression.

Impulsiveness

Exhibiting actions based on sudden desires rather than careful thought, showing a lack of deliberation or awareness of potential outcomes.

Perseveration

The repetition of a particular response (such as a word, phrase, or gesture) despite the absence or cessation of a stimulus, often associated with various forms of brain damage or mental illness.

Egocentrism

A lack of ability to separate one's personal perspective from the perspective of others.