If government revenues fall short of expenditures,the difference can be financed by

Question

Quizplus · Accepted Answer

If government revenues fall short of expenditures, the difference can be financed by borrowing or creating new money. This can be done by issuing bonds, selling securities, or simply printing new currency. Reducing taxes or buying gold would not address the immediate deficit, reducing the national debt would not provide immediate funding, and declaring bankruptcy is not a viable option for a government.

If Government Revenues Fall Short of Expenditures,the Difference Can Be