When the government cannot balance the budget, what must the government do to make up for the shortfall?
A) raise taxes
B) cut taxes
C) sell assets
D) borrow

Question

Quizplus · Accepted Answer

If the government cannot balance the budget, it must borrow to make up for the shortfall. This means that the government will sell bonds to investors who will loan money to the government, which will be paid back with interest. Raising taxes or cutting taxes might help to balance the budget, but it is not always feasible or effective. Selling assets might provide some short-term relief, but it is not a sustainable solution. Borrowing is often seen as the most viable option, but it can also lead to long-term debt if not managed properly.

When the Government Cannot Balance the Budget, What Must the Government