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Whenever the U

Question 4

Multiple Choice

Whenever the U.S. government finances expenditure by printing money,


A) it does so by borrowing from the Fed.
B) it increases the monetary base by an amount exactly equal to the number of dollars "printed."
C) it does so in lieu of financing the spending by floating new bonds in public auctions.
D) all of the above.
E) none of the above.

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