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In 1 or 2 sentences, explain how a government pays for expenses that are more than its revenues.
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Updated 1/28/2013 12:35:17 PM
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The Treasury must sell Treasury bonds to raise the money to cover the deficit. This is known as the public debt, since these bonds are sold to the public. In addition to the public debt, there is the money that the government loans to itself each year. This money is in the form of Government Account Securities, and it comes from the Social Security Trust Fund.
Added 1/28/2013 12:35:17 PM
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