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


B

Economics

You might also like to view...

In September of 2000, the Federal Reserve Bank of New York sold dollars in exchange for euro. To keep the federal funds rate on target, the Open Market desk:

A. bought dollars. B. bought U.S. Treasury bonds. C. sold dollars. D. sold U.S. Treasury bonds.

Economics

Cash and other assets that are expected to be converted to cash within one year are called

a. short-term assets b. long-term assets c. short-term liabilities d. long-term liabilities e. current assets

Economics

A decrease in demand will cause the equilibrium price and quantity of a good to fall, ceteris paribus.

Answer the following statement true (T) or false (F)

Economics

Refer to Scenario 7.1 below to answer the question(s) that follow. SCENARIO 7.1: You are the owner and only employee of a company that writes computer software that is used by gamblers to collect sports data. Last year you earned a total revenue of $90,000. Your costs for equipment, rent, and supplies were $60,000. To start this business you invested an amount of your own capital that could pay you a return of $40,000 a year. Refer to Scenario 7.1. Your economic profit last year was

A. -$40,000. B. -$10,000. C. $10,000. D. $30,000.

Economics