if the federal government has a budget deficit it can finance its spending by a. selling treasury bonds. b…

if the federal government has a budget deficit it can finance its spending by a. selling treasury bonds. b. selling municipal bonds. c. selling corporate bonds. d. all the above. which of the following statements is true regarding the national debt and federal government deficits? a. there is a positive relationship between the national debt and a federal government budget surplus. b. there is a positive relationship between the federal government budget surplus and a federal government budget deficit. c. there is a positive relationship between the national debt and a federal government budget deficit. d. there is a positive relationship between the amount of borrowing and a federal government surplus.

if the federal government has a budget deficit it can finance its spending by a. selling treasury bonds. b. selling municipal bonds. c. selling corporate bonds. d. all the above. which of the following statements is true regarding the national debt and federal government deficits? a. there is a positive relationship between the national debt and a federal government budget surplus. b. there is a positive relationship between the federal government budget surplus and a federal government budget deficit. c. there is a positive relationship between the national debt and a federal government budget deficit. d. there is a positive relationship between the amount of borrowing and a federal government surplus.

Answer

Brief Explanations:

When the federal government has a budget deficit, it needs to borrow money. National debt is the accumulation of past - year deficits. A budget deficit leads to an increase in borrowing and thus an increase in national debt. There is a positive relationship between the amount of borrowing and a federal government budget deficit, and also between national debt and a federal government budget deficit.

Answer:

D. All the above.