Multiple Choice
Nations that depend on money creation from the central bank because they cannot borrow to fund deficits are in a situation that economists call:
A) fiscal dominance.
B) fiscal inadequacy.
C) monetary insufficiency.
D) fiscal insufficiency.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q18: What is the likely cause of an
Q19: To have adequate protection to cover a
Q20: When the central bank engages in sterilization
Q21: Explain why domestic interest rates may not
Q22: With pegged exchange rates, in the case
Q24: One economic cost of an exchange rate
Q25: (Table: Central Bank Balance Sheet) Using the
Q26: A banking crisis often threatens a fixed
Q27: Typically, an exchange rate crisis can be
Q28: When the central bank offsets a fall