Question

using your knowledge of the inflation tax to find the answers. a. the u.s. treasury and the federal reserve work apart from one another and are often at odds. true b. by printing money to pay its debts, the government decreases the value of money and causes the inflation tax. c. the federal government reserves the power to print money. d. seignorage accounts for a large portion of u.s. government revenues each year.

Answer 1

Government reduces the value of money and raises the price of goods by printing money to pay off its debt. The ability to print money is reserved for the federal government.

Define Seigniorage.

Seigniorage is the difference between the face value of a coin or paper money and its manufacturing costs. Seigniorage can be regarded as positive revenue for a government when the amount it produces is worth more than it costs to create.

Seigniorage is calculated as the difference between the value or worth of money and the cost of production. Money is routinely produced at a cost that is much lower than its value. The government's seigniorage can be calculated by deducting the cost of producing money from the interest received.

To know more about Seigniorage, visit:

https://brainly.com/question/29737733

#SPJ4