The government can ________ by ________.

Question

Quizplus · Accepted Answer

Option A is correct as the government can raise revenue through taxes. This is a common way for governments to generate funds to finance their spending.

Option B is also correct as the government can go into debt by issuing government bonds. By doing so, the government borrows money from investors, promising to pay back the principal and interest at a later time.

Option C is incorrect as the government cannot create money by levying taxes alone. However, the government can create money through the process of monetary policy, which involves interventions in the money supply by the central bank.

The Government Can ________ by ________

The Government Can by