Question

For what reason might the United States government raise taxes instead of borrowing money to pay for a new government service?

To decrease public support for the new program
To prevent having to make changes to the federal budget
To show that people support taxation more than borrowing
To avoid paying interest on savings bonds

Answer 1

D: To avoid paying interest on savings bonds. Issuing bonds, entail the obligation to return them in the future, together with the corresponding interest payment.