Question #42

While it is true that the federal government is not revenue-constrained, the fact that it voluntarily issues debt every time it net spends

• means that for all intents and purposes it is acting like a household who faces a budget constraint.
• means that ultimately the deficit will match the spending gap.
• means that the government is wanting to provide the private sector with risk free wealth.

Answer #434

Answer: means that for all intents and purposes it is acting like a household who faces a budget constraint.

Explanation

Please read The size of the deficit should not be the focus or post a comment for further discussion