When a government runs a structural fiscal deficit, which of the following actions can it take to directly finance this shortfall without resorting to direct monetary creation?
Conducting open market sales of foreign exchange reserves to buy back domestic currency
Purchasing outstanding equity shares in private infrastructure and utility corporations
Directing the central bank to lower the reserve requirement for commercial banks to expand credit
Selling newly issued government bonds and treasury bills to domestic and foreign financial markets
68 exam-style questions on OCR A Level Economics Fiscal policy. Each one has a worked solution and a mark scheme showing where the marks go.