A developing country does not have enough taxes to cover its expenditures and is unable to borrow.This government would be most likely to cover its deficit by

Question

Quizplus · Accepted Answer

When a government cannot cover its expenditures through taxes and is unable to borrow from the public, it might resort to selling newly issued government bonds directly to the central bank. This process effectively allows the central bank to print money to finance the government's deficit, a method often referred to as "monetizing the debt."

A Developing Country Does Not Have Enough Taxes to Cover