If a federal budget in which expenditures exceed revenue is enacted, the federal government will
A)raise taxes.
B)raise taxes and cut spending.
C)cut spending.
D)sell off assets.
E)borrow money from the private sector.

Question

Quizplus · Accepted Answer

When a federal budget results in expenditures exceeding revenue, the government often borrows money from the private sector to cover the deficit. This is done through the issuance of government bonds and securities.

If a Federal Budget in Which Expenditures Exceed Revenue Is