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Monetization of the Deficit (Or Debt) Means That

Question 113

Multiple Choice

Monetization of the deficit (or debt) means that


A) the government uses monetary policy to control the economy rather than fiscal policy.
B) inflation accounting corrects for price increases.
C) the Fed buys newly issued debt and increases the money supply.
D) the amount of money in circulation is equal to the size of the debt.

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