The government might be encouraged to finance its debt through seigniorage because: a. printing money reduces the price level and thus reduces the real value of government debt. O b. seigniorage is widely considered the best solution to huge fiscal problems. O C. None of the other choices are correct. O d. it is easier to print money when the central bank does not accommodate the government's deficit.

The government might be encouraged to finance its debt through seigniorage because: a. printing money reduces the price level and thus reduces the real value of government debt. O b. seigniorage is widely considered the best solution to huge fiscal problems. O C. None of the other choices are correct. O d. it is easier to print money when the central bank does not accommodate the government's deficit.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter24: Fiscal Policy

Section: Chapter Questions

Problem 15P

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