Question

To pay for public works, the government would have to raise taxes or

Answer 1

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.