Which of the following is true?
A)Though not required by law, the government tends to run a balanced budget year after year.
B)If there is a budget deficit, the government must borrow to pay for the excess spending.
C)If there is a budget deficit, the government must ask the Fed to print money to finance excess spending.
D)By law the federal budget must balance.
E)If there is a budget deficit, the government must raise taxes.

Question

Quizplus · Accepted Answer

A budget deficit occurs when the government spends more money than it earns in revenue. In this case, the government must borrow the excess funds to finance its spending. This borrowing can be in the form of selling Treasury bonds to investors or borrowing from other countries.

Which of the Following Is True