When a government runs a deficit, it _________ a. It cuts fundings for defense and uses the money to other government services. b. It shuts the government down. c. It borrows from the public through the financial system to increase its spending. d. It reallocates money from departments that have excesses to departments that have deficits.

When a government runs a deficit, it _________ a. It cuts fundings for defense and uses the money to other government services. b. It shuts the government down. c. It borrows from the public through the financial system to increase its spending. d. It reallocates money from departments that have excesses to departments that have deficits.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter11: Fiscal Policy

Section: Chapter Questions

Problem 19E

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