TED-Ed: How do governments create money out of thin air? | Jonathan Smith

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5 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is one action that governments cannot take to manage the economy?
Decrease taxes
Implement economic policies
Increase the money supply
Create jobs through infrastructure projects
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why is printing unlimited money not a viable long-term solution for economic crises?
It leads to deflation
It decreases employment
It increases government debt
It can cause inflation
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the primary goal of quantitative easing?
To increase taxes
To reduce government spending
To infuse the economy with cash while controlling inflation
To decrease the money supply
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How does the Federal Reserve's purchase of treasury bonds affect other investors?
It increases the return on bonds
It incentivizes lending to riskier entities
It stabilizes bond prices
It discourages investment in small companies
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What concern do some economists have about central banks buying government debt?
It may lead to increased taxes
It could result in higher interest rates
It could subvert the economic protection system
It might cause a decrease in inflation
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