Assume the U.S. government was to decide to increase the budget deficit. Holding all else constant, this will cause ______ to decrease.

Question

Quizplus · Accepted Answer

An increase in the budget deficit typically leads to increased government borrowing, which can put upward pressure on interest rates. It may also affect unemployment, but the direction can vary depending on the economic context. Therefore, none of the provided options correctly state that something will decrease as a direct and universal consequence of increasing the budget deficit.