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In order to make up for a budget deficit, the government can do what?

  • Question 9b of 10 - Federal budget

  • Maximum Attempts: 1
  • Question Type: Multiple Choice
  • Maximum Score: 2
  • Question: In order to make up for a budget deficit, the government can do what?
  • Answers:
  1. reduce tariffs
  2. issue bonds
  3. increase the money supply
  4. start government corporations

The correct answer is: issue bonds. The government gets money from bondholders to cover the difference between revenues and spending.

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