QuestionDecember 16, 2025

The government can finance a budget deficit by buying bonds from the Federal Reserve. buying bonds from the public. selling assets. buying assets.

The government can finance a budget deficit by buying bonds from the Federal Reserve. buying bonds from the public. selling assets. buying assets.
The government can finance a budget deficit by
buying bonds from the Federal Reserve.
buying bonds from the public.
selling assets.
buying assets.

Solution
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Answer

buying bonds from the public. Explanation 1. Identify deficit financing methods To finance a budget deficit, the government must raise funds by borrowing or selling something of value. 2. Choose correct option Raising funds is typically done by issuing and selling government bonds to the public.

Explanation

1. Identify deficit financing methods<br /> To finance a budget deficit, the government must raise funds by borrowing or selling something of value.<br />2. Choose correct option<br /> Raising funds is typically done by issuing and selling government bonds to the public.
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