Monetizing the debt occurs when a government:
A) raises tax to pay off the debt.
B) issues more debt to finance its budget deficit.
C) decreases the money supply to pay off the debts.
D) pays off its debts by printing money.

Question

Quizplus · Accepted Answer

Monetizing the debt refers to the process where a government pays off its national debt by printing more money. This can lead to inflation if done excessively, as it increases the money supply.

Monetizing the Debt Occurs When a Government