When government runs a budget deficit, it makes up the difference by:
A)issuing government bonds.
B)paying down outstanding debt.
C)increasing transfer payments.
D)increasing public saving.

Name: When government runs a budget deficit, it makes up the difference by: A)issuing government bonds. B)paying down outstanding debt. C)increasing transfer payments. D)increasing public saving.
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Question

Quizplus · Accepted Answer

Like a household, when government spends more than it takes in it must borrow to make up the difference.

When Government Runs a Budget Deficit, It Makes Up the Difference