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2 years ago

How does the federal government fund the yearly budget?

2 answers:

8 0

The correct answer is It takes in tax revenue and buys bonds.

Taxes are the main way that the federal budget is funded, which is why taxes have to be paid. They come from companies, people, organizations, and basically everyone.

vova2212 [387]2 years ago

3 0

The option D is correct. The federal government fund the yearly budget by takes in tax revenue and buys the bond.

Further Explanation:

Federal government fund is the amount of money that the government invests for the development and the growth of the country. This fund is also spent on the public and basic amenities facility.

Justification for the correct and incorrect answer:

It borrows money by selling bonds and takes in tax revenue: This option is incorrect.

The government takes tax revenue from the citizens of the country, but if the government takes money by selling the bonds. The debt on the government is increased which may affect the growth of the country.

It borrows money by buying bonds and prints more currency: This option is incorrect.

The government does not make more amount of funds by buying the bonds. This option is not correct.

It sells off high-value stocks and sells natural resources such as oil: This option is incorrect.

If the government sells off high-value stocks, then the government may incur a loss. The government sells natural resources, then the citizens of that country do not have enough natural resources to meet their needs.

It takes in tax revenue and buys bonds: This option is correct.

This is the best way, as the government can collect tax revenue from the citizens and if there is less amount of money then the government may buy the bond.

Learn more:

1. Learn more about budgeting

brainly.com/question/1890422

2. Learn more about the goal of the budget

brainly.com/question/1226004

3. Learn more about GDP and taxes

brainly.com/question/4306898

Answer details:

Grade: Middle School

Subject: Business

Chapter: Federal Budget

Keywords: federal government, budget, fund, tax revenue, buy a bond, citizens of the country, development, growth, basic amenities, public, currency, natural resources, oil.

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