In the presence of borrowing restrictions, the government decision to finance its spending by issuing bonds and decreasing current taxes may be advantageous for the economy because itIn the presence of borrowing restrictions, the government decision to finance its spending by issuing bonds and decreasing current taxes may be advantageous for the economy because it Question 17 options: encourages more private saving. discourages credit-constrained consumers from borrowing too much. allows credit-constrained consumers to borrow more. eliminates the problems that cause credit market imperfections