For what reason might the united states government raise taxes instead of borrowing money to pay for a new government service? to avoid increasing the flow of money in the economy to avoid having to change the federal interest rate to demonstrate that people support the concept of taxation more than borrowing to avoid paying interest on savings bonds

The correct answer is: "To avoid paying interest on savings bonds".

Taxes are the main source of income for the goverment in an economy. If the level of income raised through taxes is not enough to finance goverment spending (that is used to provide public services, for example), the goverment needs to borrow funds. The goverment gets indebted by issuing public debt, using the financial instrument called bond, which is bought by investors, who are the ones who lend the money.

Borrowed funds obtained by issuing bonds, entail the obligation to return them in the future, together with the corresponding interest payment. If the amount of money needed is raised using taxes instead, the goverment will avoid the interest payment.

the correct answer is d. the monetary reserve is a set of funds represented in currency, money or similar, saved as a forecast of possible needs or for legal reasons.

the increase or decrease in the monetary base influences in the increase or decrease of the inflation rate. therefore, the excess of monetary reserve will cause the reduction of inflation.

        i'm fairly sure that the correct answers are 2 and 3.

        i used both my knowledge of world history and the process of elimination to obtain these answers. option 1 cannot be a possible selection because the mandate of heaven belongs to ancient chinese philosophical belief. option 4 sounds like it would benefit the region than detriment it. however, both 2 and 3 explain a potential reason for what could have contributed to the fall of the roman empire.

      hope this ! if i were you, i'd get a second opinion, because i haven't taken this course for a year. best of luck!

***websites that me understand the curriculum better last year are and ***