Methods of Financing Government Spending Are Described by an Expression

Multiple Choice

Methods of financing government spending are described by an expression called the government budget constraint,which states the following

A) the government budget deficit must equal the sum of the change in the monetary base and the change in government bonds held by the public.
B) the government budget deficit must equal the difference between the change in the monetary base and the change in government bonds held by the public.
C) the government budget deficit must equal the difference between the change in the monetary base and the change in government bonds held by the Fed.
D) the government budget deficit must equal the difference between the change in the monetary base and the change in government bonds held by the Treasury.