Assume the U.S. government was to decide to increase the budget deficit. This action will most...
Assume the U.S. government was to decide to increase the budget deficit. This action will most likely cause __________ to increase.
| A. |
interest rates |
|
| B. |
education level |
|
| C. |
unemployment |
|
| D. |
tax |
Homework Answers
Answer
Option A
interest rates
The increased budget deficit is financed by government borrowing which increases demand for money in the economy which increases the interest rate in the economy.
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