savanelmassie
contestada

To pay for public works, the government would have to raise taxes or
a. print money
b. reduce inflation
c. borrow from foreign governments
d. borrow from banks?

Respuesta :

Let's look at the options:
a. print money
-this won't increase the amount of wealth, as the remaining money will loose value (inflation)

b. reduce inflation
-it's not very easy to reduce inflation and the governments can't just decide to reduce inflation.

c. borrow from foreign governments
-yes, I would say that this is the best answer! governments often do this.

d. borrow from banks?
-they could do this, yes, but they don't typically do this, as they would be dependent on the banks in this case.

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