Question

How do governments get the money for the goods and services that they provide? They print money as they need it. All government spending comes directly from taxes. Government spending is paid from either taxes or borrowed money. none of the above

Answer 1

The right answer is that the governments get the money for the goods and services that they provide from either taxes or borrowed money (debt). Nevertheless, some goverments that do not follow good economical policies may incur in printing money which is not a good practice and create artificial money which translates in inflation. Also goverments may get some money from donations, which is not a normal way but is possible, when the country has suffered a special natural disaster.