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In the United States, Any Deficit Run by the Federal

Question 34

Multiple Choice

In the United States, any deficit run by the federal government must be financed


A) by increases in the monetary base arranged by the Fed selling existing bonds or changes in government investment patterns.
B) only by increases in the national debt financed by the Treasury's floating new bonds.
C) by increases in the monetary base arranged by the Fed selling existing bonds or changes in the national debt arranged by the Treasury buying back existing bonds.
D) increases in the monetary base arranged by the Fed buying existing bonds or changes in the national debt arranged by the Treasury floating new bonds.
E) by none of the above.

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