Question

Seignorage is the​ ____________.A.increase in the price level when a government prints money to fund its budget deficit.B.difference between the cost of printing paper money and the value of the goods and services that the government can purchase with the newly printed money.C.difference between the amount of money a government prints and the tax revenue that the government brings in from individuals and businesses.D.costs that governments incur in printing money and minting coins.

Answer 1

Answer: difference between the cost of printing paper money and the value of the goods and services that the government can purchase with the newly printed money

Explanation: Seignorage is the revenue obtained by the difference between revenue earned from minting money and the costs of producing and distributing the notes. When the money it creates is worth more than it costs to produce it is noted as revenue.