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  3. Study Set
    Economics Principles and Policy Study Set 2
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    Exam 32: Budget Deficits in the Short and Long Run
  5. Question
    What Does It Mean to "Monetize the Deficit"? Why Is
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What Does It Mean to "Monetize the Deficit"? Why Is

Question 18

Question 18

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What does it mean to "monetize the deficit"? Why is it important in discussions of fiscal policy? Use an appropriate diagram to illustrate your answer.

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If the Fed wishes to keep interest rates...

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