When the budget is in deficit, the government generally:
A)raises taxes.
B)increases the public debt.
C)sells public assets like national parks.
D)decreases military spending.

Question

Quizplus · Accepted Answer

When the government operates in a deficit, it usually increases the public debt by borrowing more money from citizens, corporations, or foreign countries. Raising taxes or decreasing military spending are other options, but they may not be enough to cover the deficit. Selling public assets like national parks is highly unlikely, as it would not generate enough revenue to make a significant impact on the deficit.

When the Budget Is in Deficit, the Government Generally