This Method of Financing Government Spending Is Frequently Called Printing

Multiple Choice

This method of financing government spending is frequently called printing money because high-powered money (the monetary base) is created in the process.

A) Financing government spending with taxes.
B) Financing government spending through a Treasury sale of bonds that are then purchased by the Fed.
C) Financing government spending by selling bonds to the public, which pays for the bonds with currency.
D) Financing government spending by selling bonds to the public, which pays for the bonds with checks.