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Net public debt is gross public debt minus all government interagency borrowing, all public debt plus all government interagency borrowing. all public debt minus all money owed on the federal income tax. all federal public debt irrespective of who owns it. QUESTION 5 How does the federal government finance a budget deficit? It borrows funds by selling Treasury bonds. It cuts spending on entitlement programs. It purchases U.S. Treasury bonds. It redeems its lous.

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Answer:1. All public debt minus all money own on the federal income tax.

2 It cuts spending on entitlement programs

Step-by-step explanation:

Public debts refers to sum total of goverments debts, in relation to net public debts this refers to the gross debts minus all debts payments that are due to the government of which tax income is an example

Deficit budget is a situation where the budgeted incomes for the coming. year is less than the budgeted expenditures for the coming year. The government is faced with the issue of raising funds to finance the budget an one of such ways is reducing spending on the expenditures.

Buying treasury bonds or redemption of ( iou) will only reduce the already not enough funds available to fund the budget and invariably increasing the deficit.

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