6. Considering question 5, what do you think of a proposal to raise more government revenue by...
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6. Considering question 5, what do you think of a proposal to raise more government revenue by instructing the Federal Reserve System to remit more money to the U.S. Treasury? Since the Federal Reserve Sys¬ tem earns most of its profit on holdings of U.S. government bonds, it would have to purchase more such bonds. Would pur¬ chasing more bonds be possible? Would it be desirable? On what do you base your answer? Consider carefully what it takes to purchase more bonds and the likely effect on the economy.
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Money Banking And Financial Markets An Economic Approach
ISBN: 9780395643952
1st Edition
Authors: Michael R. Baye, Dennis Jansen
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