Suppose the Private Sector Wishes to Hold a Constant Level

Multiple Choice

Suppose the private sector wishes to hold a constant level of real high-powered money.This means that with an ongoing inflation of p percent,each year the government treasury can obtain goods from the private sector in exchange for ________ p times the existing high-powered money,a government revenue source called ________.

A) creating,seignorage
B) creating,transfer payments
C) collecting,seignorage
D) collecting,transfer payments