Government's right to print money to finance deficits is referred to as:

Question

Quizplus · Accepted Answer

Seignorage is the profit that a government earns by printing money. When a government prints money, it can then use that money to finance its deficit spending. This process is often referred to as "printing money to pay the bills." Seignorage can be an effective way for governments to finance their spending, but it can also lead to inflation if too much money is printed.

Government's Right to Print Money to Finance Deficits Is Referred