Suppose the Private Sector Wishes to Hold a Constant Level

question 95

Multiple Choice

Suppose the private sector wishes to hold a constant level of real high-powered money.This means that with an ongoing inflation of p percent,each year the government treasury can obtain goods from the private sector in exchange for ________ p times the existing high-powered money,a government revenue source called ________.

• A)creating,seignorage
• B)creating,transfer payments
• C)collecting,seignorage
• D)collecting,transfer payments

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Definitions:

Need For Achievement

A psychological trait that drives individuals to seek success and accomplishment in their endeavors.

Managerial Success

The achievement of desired business outcomes and objectives through effective leadership, decision-making, and resource management.

Institutional Power

The authority and influence possessed by an organization, enabling it to control or direct societal or organizational outcomes.

Market Share

The proportion of an industry's sales that is earned by a particular company over a specified time period.