Use the following to answer questions:
-When the federal government borrows from the public to finance the government's purchases of goods and services and the Bank of Canada buys the debt back from the public in the form of Treasury bills,it is known as:

Question

Use the following to answer questions: 
-When the federal government borrows from the public to finance the government's purchases of goods and services and the Bank of Canada buys the debt back from the public in the form of Treasury bills,it is known as:

Quizplus · Accepted Answer

Monetizing the debt refers to the process where the central bank purchases government debt, such as Treasury bills, from the public to provide the government with additional funds to finance its spending, thus increasing the money supply.

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