Question

What example shows one way the government borrows money? Individuals pay unemployment taxes. A coffee shop charges patrons $2 extra for sales tax. An employee earns more money as a textile distributor because of tariffs. Individuals buy U.S. treasury bills at the bank.

Answer 1

The correct answer is Individuals buy U.S. treasury bills at the bank

This are government securities that do not yield interest but are issued at a discount on their redemption price. They are used by the treasury or government to raise short term capital

Answer 2

What example shows one way the government borrows money?

Individuals buy U.S. treasury bills at the bank.