If the government's expenditures exceeded its receipts, what would it most likely do?
A) It would lend money to a bank or other financial intermediary.
B) It would borrow money from a bank or other financial intermediary.
C) It would directly buy bonds from the public.
D) It would directly sell bonds to the public.

Question

Quizplus · Accepted Answer

When a government's expenditures exceed its receipts, it typically needs to raise funds to cover the deficit. One common way to do this is by issuing and selling bonds to the public, which is effectively borrowing money from bond purchasers.

If the Government's Expenditures Exceeded Its Receipts, What Would It