Government is typically a ________.
A) net provider of funds because it borrows more than it saves
B) net demander of funds because it borrows more than it saves
C) net provider of funds because it can print money at will
D) net demander of funds because it saves more than it borrows

Question

Quizplus · Accepted Answer

Government typically spends more money than it collects in taxes, leading to a budget deficit. To finance this deficit, the government must borrow money by issuing bonds. Therefore, the government is a net demander of funds.

Government Is Typically a ________