if the federal government has a budget deficit it can finance its spending by\na. selling treasury…
if the federal government has a budget deficit it can finance its spending by\na. selling treasury bonds.\nb. selling municipal bonds.\nc. selling corporate bonds.\nd. all the above.
Answer
Brief Explanations:
When the federal government has a budget deficit, it can issue Treasury bonds to raise funds from the public. Municipal bonds are issued by local - governments, and corporate bonds are issued by corporations. So the federal government finances deficits by selling Treasury bonds.
Answer:
A. selling Treasury bonds