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

Question

Quizplus · Accepted Answer

When the U.S. government decides to increase the budget deficit, it typically needs to borrow more to finance this deficit, leading to an increase in government borrowing. As the government borrows more, it can lead to an increase in interest rates due to higher demand for loanable funds.