To make the promised payments, the federal money can _______________?
Correct answer: D. both A and B
- A. raise taxes
- B. print money
- C. increase labor hours
- D. both A and B
Explanation
The federal government can finance promised payments by raising tax revenue or creating additional money, although printing money may generate inflation. Therefore both listed methods apply.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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