Question
The government finances the budgetary deficit by A) from the public (through the sale of B) issued by the U.S. Treasury), or from other countries
The government finances the budgetary deficit by A) from the public (through the sale of B) issued by the U.S. Treasury), or from other countries (such as China), or from the Federal Reserve System (we'll get into that in the next module). People holding U.S. government Treasury Bills, Treausry notes and Treasury bonds are C) (lenders/borrowers - fill in the number from the word bank) to/from the federal government. The total amount owed by the federal government is known as the D) debt. Currently, about E) % (fill in whole number - no decimals or percentage sign) of this debt is held by foreigners or foreign governments. Not only must the government pay back this debt, but it also must pay F) while it holds the lenders money. In 2021 (the year i, the interest on the Zoom lecture on Fiscal Policy was made), this interest payment was G) $ billion (fill in whole number).
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