The U.S.federal government finances budget deficits by
A)selling stock,much like a corporation.
B)printing additional currency.
C)borrowing from the public.
D)raising property taxes.

Question

Quizplus · Accepted Answer

The U.S. federal government finances budget deficits by borrowing from the public through the sale of government securities such as Treasury bonds, bills and notes. This borrowing is done through the financial markets and is also known as public debt. The government pays interest on this debt, which is an important factor in the federal budget. Selling stock is not an option as the government is not a corporation, printing additional currency can lead to inflation and raising property taxes is a responsibility of state and local governments, not the federal government.

The U.S.federal Government Finances Budget Deficits by