The U.S. federal government finances most of its new spending by:

Question

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The U.S. federal government finances most of its new spending by issuing bonds. Bonds are a form of borrowing where the government sells IOUs to investors; in exchange, investors receive interest payments and eventually their initial investment back. This allows the government to raise large amounts of money to fund its expenditures without resorting to printing money or borrowing directly from banks and investors. Charging user fees is another way the government can raise revenue, but it typically does not provide enough funds to finance major new spending programs.

The US Federal Government Finances Most of Its New Spending By