A developing country does not have enough taxes to cover its expenditures and is unable to borrow. This government would be most likely to cover its deficit by

A developing country does not have enough taxes to cover its expenditures and is unable to borrow. This government would be most likely to cover its deficit by 



(a) purchasing government bonds from the public.
(b) selling government bonds to the public.
(c) selling newly issued government bonds directly to the central bank.
(d) buying newly issued government bonds directly from the central bank.





Answer: C


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