The way the U.S. government borrows money to finance deficits is by

Question

Quizplus · Accepted Answer

The U.S. Treasury sells bills and bonds to investors, including individuals, banks, and foreign governments, to borrow money to finance deficits. This creates a debt obligation for the government to pay back with interest. Selling shares of stock in the government is not a common method of borrowing money, purchasing foreign assets would not generate additional revenue, and a decrease in interest rates would not generate additional revenue for the government but rather decrease borrowing costs.

The Way the U