Question

What example shows one way the government borrows money? Individuals pay unemployment taxes. A coffee shop charges patrons $2 extra for sales tax. An employee earns more money as a textile distributor because of tariffs. Individuals buy U.S. treasury bills at the bank.

Answer 1

The correct answer is Individuals buy U.S. treasury bills at the bank.

Treasury bills are securities that are issued by government through the federal reserve. Although they do not yield interest, they are sold on discount on their redemption price. They enable government to borrow on the short term