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) privatizing.
E) increasing interest rates.

Question

Quizplus · Accepted Answer

Printing money is a method governments can use to finance spending in excess of tax revenues, though it may lead to inflation.

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