When the government sells bonds to finance government expenditures,it actually encourages more household saving.

Question

Quizplus · Accepted Answer

When the government sells bonds, it is essentially borrowing money from households and other investors. This means that households are investing their savings into government bonds. As a result, households are encouraged to save more in order to invest in government bonds, which can provide a secure and relatively low-risk investment option. Therefore, the sale of government bonds can encourage more household saving.

When the Government Sells Bonds to Finance Government Expenditures,it Actually