When the government budget deficit increases, national saving increases.

Name: When the government budget deficit increases, national saving increases.
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Question

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When the government budget deficit increases, it means the government is spending more than it is collecting in revenue, which decreases national saving. National saving is the sum of public and private saving, so a decrease in government saving (i.e. an increase in budget deficit) reduces national saving.

When the Government Budget Deficit Increases, National Saving Increases