When an annual deficit occurs, how is it financed?  1. The federal government buys US Treasury Securities from domestic and foreign investors to raise cash. The future obligations of these securities result in publicly held assets. 2. The federal government sells US Treasury Securities to domestic and foreign investors to raise cash. The future obligations of these securities result in publicly held deficits. 3. The federal government buys US Treasury Securities from domestic and foreign investors to raise cash. The future obligations of these securities result in publicly held investments. 4. The federal government sells US Treasury Securities to domestic an

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When an annual deficit occurs, how is it financed? 

1. The federal government buys US Treasury Securities from domestic and foreign investors to raise cash. The future obligations of these securities result in publicly held assets.
2. The federal government sells US Treasury Securities to domestic and foreign investors to raise cash. The future obligations of these securities result in publicly held deficits.
3. The federal government buys US Treasury Securities from domestic and foreign investors to raise cash. The future obligations of these securities result in publicly held investments.
4. The federal government sells US Treasury Securities to domestic and foreign investors to raise cash. The future obligations of these securities result in publicly held debt.
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