When the government has a deficit, it will most likely finance the deficit by:

Question

Quizplus · Accepted Answer

When the government has a deficit, it means that it is spending more money than it is receiving in revenue. To finance the deficit, the government can borrow money by issuing bonds or borrowing from other countries. This is a common practice in most countries around the world. The other choices listed (A, B, and D) may have a small impact on reducing the deficit, but they are not significant enough to fully finance it.

When the Government Has a Deficit, It Will Most Likely