When the US government engages in deficit spending, that spending is primarily financed by

(a) increasing the required reserve ratio
(b) borrowing from the World Bank
(c) issuing new bonds
(d) appreciating the value of the dollar
(e) depreciating the value of the dollar

Answer: (c) issuing new bonds

Economics

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The sale of new stocks by a corporation is one source of investment funds

a. True b. False Indicate whether the statement is true or false

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The monopolistic competition model assumes that:

A. allocative efficiency will be achieved. B. productive efficiency will be achieved. C. firms will engage in nonprice competition. D. firms will realize economic profits in the long run.

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