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Which of these enables the government to make up for a budget deficit?

  • Question 9a of 10 - Federal budget

  • Maximum Attempts: 1
  • Question Type: Multiple Choice
  • Maximum Score: 2
  • Question: Which of these enables the government to make up for a budget deficit?
  • Answers:
  1. monetary policy
  2. regressive taxation
  3. defense contractors
  4. the bond market

The correct answer is: the bond market. The government issues bonds to cover the costs that exceed its revenues.

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