When a government runs a deficit, it _________ a. It cuts fundings for defense and uses the money to other government services. b. It shuts the government down. c. It borrows from the public through the financial system to increase its spending. d. It reallocates money from departments that have excesses to departments that have deficits.

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter31: The Impacts Of Government Borrowing
Section: Chapter Questions
Problem 18CTQ: The U.S. government has shut down a number of times In recent history Explain how a government...
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When a government runs a deficit, it _________

a. It cuts fundings for defense and uses the money to other government services.

b. It shuts the government down.

c. It borrows from the public through the financial system to increase its spending.

d. It reallocates money from departments that have excesses to departments that have deficits. 

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