Monetizing the deficit occurs when:
A. the central bank purchases newly issued government bonds.
B. the central bank prints more money because the private sector’s money demand has increased.
C. banks lend more dollars to the central bank.
D. banks buy more treasury bills from the US Treasury.
Answer:A
Monetizing the deficit occurs when:
A. the central bank purchases newly issued government bonds. B. the central bank prints more money because the private sector’s money demand has increased. C. banks lend more dollars to the central bank. D. banks buy more treasury bills from the US Treasury.