When a government fails to balance its _______, it has to borrow money by issuing ______ in order to make up the shortfall.

Question

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When a government fails to balance its budget (spending vs. revenue), it has to borrow money by issuing bonds (a form of debt) in order to make up the shortfall. Bonds are essentially IOUs that promise to pay interest over a set period of time and let governments raise funds from investors.

When a Government Fails to Balance Its _______, It Has