To increase the nominal money supply, the government can a) engage in open market sales of interest-bearing debt b) Use a helicopter drop c) increase deposit insurance for banks d) temporarily increase government spending, funded by an increase in either taxes or the quantity of government bonds. e) increase in government spending and taxes by same amount
To increase the nominal money supply, the government can a) engage in open market sales of interest-bearing debt b) Use a helicopter drop c) increase deposit insurance for banks d) temporarily increase government spending, funded by an increase in either taxes or the quantity of government bonds. e) increase in government spending and taxes by same amount
Chapter16: Monetary Policy
Section: Chapter Questions
Problem 10SQ
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To increase the nominal money supply, the government can
a) engage in open market sales of interest-bearing debt
b) Use a helicopter drop
c) increase deposit insurance for banks
d) temporarily increase government spending, funded by an increase in either taxes or the quantity of government bonds.
e) increase in government spending and taxes by same amount
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