A budget deficit will require the government to issue bonds to fill in the gap in the budget.

Name: A budget deficit will require the government to issue bonds to fill in the gap in the budget.
Brand: Quizplus
Rating: 4.9 (56 reviews)

Question

Quizplus · Accepted Answer

A budget deficit means that the government is spending more money than it is receiving in revenue. In order to make up for this shortfall, the government issues bonds, which are a form of borrowing. These bonds are sold to investors who provide the government with the funds it needs to cover its expenses.

A Budget Deficit Will Require the Government to Issue Bonds