According to the government's budget constraint, if the government spends more than it generates in taxes, it can raise revenues by:
A) printing money
B) decreasing its debt
C) lowering interest rates
D) privatizating
E) increasing interest rates

Question

Quizplus · Accepted Answer

When the government spends more than it generates in taxes, it can raise revenues by printing money, which is a way to finance its deficit.

According to the Government's Budget Constraint, If the Government Spends