Question

Which of the following is true about the U.S. federal government's ability to borrow money?

A. Elected officials in the federal government can prove to voters that they are responsible by paying back government debts on time.
B. The Constitution forbids the federal government from raising taxes, so the government needs to borrow money to cover the expenses of the services it provides.
C. The federal government can put money back into the economy during times of economic hardship without raising taxes.
D. Purchases of goods and services the government makes on credit can be insured by credit card companies, unlike items purchased with taxpayers' dollars.

Answer 1

The answer is B

Hope this helps ^_^

Answer 2

The correct answer is C) the federal government can put money back into the economy in times of economic hardship, without raising taxes.

The statement that is true about the federal government's ability to borrow money is that the federal government can put money back into the economy in times of economic hardship, without raising taxes.

The government of the United States regulates economic activity in the country to try to avoid any financial contingency. His goal is to maintain a high level of employment and the stability of the prices in the market. In doing so, the government has its fiscal policy to determine taxes and government spending. It also has the control of the supply of money, which means a monetary policy to act when it's needed.