Interest payments on federal government bonds which are owned by the central bank 1, are recorded as central bank profits and then paid to the government as dividends. 2, are recorded as central bank profits and paid out to the private investors who own the central bank. 3, necessitate an increase in taxation so that they can be funded. 4, lead to a decrease in the money suppy.
Interest payments on federal government bonds which are owned by the central bank 1, are recorded as central bank profits and then paid to the government as dividends. 2, are recorded as central bank profits and paid out to the private investors who own the central bank. 3, necessitate an increase in taxation so that they can be funded. 4, lead to a decrease in the money suppy.
Chapter14: Security Structures And Determining Enterprise Values
Section: Chapter Questions
Problem 11EP
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Interest payments on federal government bonds which are owned by the central bank
1, are recorded as central bank profits and then paid to the government as dividends.
2, are recorded as central bank profits and paid out to the private investors who own the central bank.
3, necessitate an increase in
4, lead to a decrease in the money suppy.
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