The federal government finances budget deficits by

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The federal government finances budget deficits by borrowing from the public through the sale of bonds and Treasury bills. This creates a national debt, which must eventually be repaid with interest. Selling stock like a corporation or raising property taxes are not typically methods used to finance federal government deficits. Printing additional currency can also be done but can lead to inflation and devalue the currency.

The Federal Government Finances Budget Deficits by