During most of the time in recent decades,the domestic government sector was
A) a net borrower.
B) a net lender.
C) neither a borrower nor a lender.
D) a major factor in keeping real interest rates low.

Question

Quizplus · Accepted Answer

The domestic government sector, which includes government at all levels (federal, state, and local), has been running budget deficits for the majority of recent decades. This means that the government is spending more money than it is taking in through taxes and other means, and is thus borrowing money to make up the difference. As a result, the government sector has been a net borrower, taking in more funds from lenders (including individuals, other governments, and foreign entities) than it has been lending out. This has contributed to the overall level of debt in the economy, which has implications for interest rates, inflation, and other macroeconomic variables.

During Most of the Time in Recent Decades,the Domestic Government