If the Federal Reserve purchases newly issued government bonds, the government is said to be

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Quizplus · Accepted Answer

Monetizing the deficit occurs when the government finances its expenditures by printing new money, or when the central bank creates new money to purchase government bonds. In this case, the Federal Reserve is purchasing newly issued government bonds, which means it is effectively financing the government's deficit spending by creating new money. This is known as monetizing the deficit.

If the Federal Reserve Purchases Newly Issued Government Bonds, the Government