If a government sells debt to help meet its expenditures,then the government has a
A)budget surplus.Other things the same,the surplus rises if government expenditures rise.
B)budget surplus.Other things the same,the surplus rises if government expenditures fall.
C)budget deficit.Other things the same,the deficit rises if government expenditures rise.
D)budget deficit.Other things the same the deficit rises if government expenditures fall

Question

Quizplus · Accepted Answer

If a government sells debt to meet its expenditures, it means that it is unable to finance those expenditures through its revenue. This indicates a budget deficit. The deficit will increase if the government spends more without increasing its revenue, leading to greater debt issuance. Therefore, option C is the best choice.

If a Government Sells Debt to Help Meet Its Expenditures,then