Question

For what reason might the United States government raise taxes instead of borrowing money to pay for a new government service?
A.To avoid increasing the flow of money in the economy
B.To avoid having to change the federal interest rate
C.To demonstrate that people support the concept of taxation more than borrowing
D.To avoid paying interest on savings bonds

Answer 1

Borrowed money is purchased. You pay back the amount borrowed plus a profit for the lender.
A tax is money the government compels people to pay. No extra cost.

Answer 2

so .... C ?

Answer 3

No D