which of the following is the most likely way a government will finance deficit spending? choose 1 answer: a…
which of the following is the most likely way a government will finance deficit spending? choose 1 answer: a increase public saving b borrowing c buy bonds d decrease the discount rate e print money
Answer
Brief Explanations:
When a government has a deficit (spends more than it takes in), borrowing is a common method. Increasing public saving would reduce spending rather than finance it. Buying bonds is an action in financial - markets but not a way to finance deficit spending directly. Decreasing the discount rate is a monetary policy tool of central banks, not a government financing method. Printing money can cause inflation and is not a typical first - choice. Governments usually issue bonds (borrow) to finance deficits.
Answer:
B. Borrowing