Financing government spending by selling bonds to the public, which pays for the bonds with currency,
A) leads to a permanent decline in the monetary base.
B) leads to a permanent increase in the monetary base.
C) leads to a temporary increase in the monetary base.
D) has no net effect on the monetary base.
D
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In the circular flow model, consumption goods are bought and sold in the
A) goods markets. B) financial market. C) factor markets. D) government market. E) monetary flows.
What is purchasing power parity? Why might it not hold?
What will be an ideal response?
The main categories of taxes levied by the ______________ government are individual income taxes, corporate income taxes, and social insurance and retirement receipts.
a. federal b. state c. local d. city
In economics, the term _______________ describes spending that pays for the production and accumulation of capital goods.
a. investment b. capital c. money