The central bank is said to monetize the deficit when it
A. prints Federal Reserve notes to satisfy the increased demand for money.
B. sells government bonds from its own portfolio of government securities.
C. requires member banks to buy the bonds to finance the deficit.
D. purchases the bonds that the government issues.
Answer: D
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In the table above, what does the private sector surplus equal?
A) $500 billion B) $350 billion C) $150 billion D) $0
Municipalities that have adopted the policy of "rent control" typically set the rentals on certain apartments well below equilibrium. As a result,
A) landlords have a difficult time finding tenants. B) prospective tenants have a difficult time finding available apartments. C) there is a surplus of apartments. D) All of the above.
Health care that actually harms the patient, such as an adverse reaction to a prescription drug is called:
a. adverse selection. b. morbidity-related response. c. moral hazard. d. defensive medicine. e. iatrogenic disease
The loss-minimizing output for the perfectly competitive firm occurs at the point at which
A. TC - ATC = maximum. B. TR - MR = minimum. C. TR - TC = maximum. D. MR = MC.