A Federal budget deficit is financed by the:

Question

Quizplus · Accepted Answer

A Federal budget deficit occurs when government spending exceeds government revenue. To finance this deficit, the government can issue or sell Treasury securities, such as bonds, notes or bills, to the public. This allows the government to raise funds and borrow money from the public to cover the deficit. Therefore, the correct answer is B - Government issuance or sale of Treasury securities. Choices A, C, and D are not correct because they do not directly fund the budget deficit.

A Federal Budget Deficit Is Financed by The