Nations that are unable to borrow money to pay for budget deficits often resort to
A) printing new money to cover the deficit.
B) purchasing bonds issued by other nations.
C) lowering taxes.
D) destroying money already in circulation.

Question

Quizplus · Accepted Answer

When a nation is unable to borrow money, they may resort to printing new money to cover budget deficits. However, this can lead to inflation and a decrease in the value of the country's currency.

Nations That Are Unable to Borrow Money to Pay for Budget