An increase in borrowing by the U.S. government will result in all of the following, except
A) upward pressure on interest rates.
B) reduction in government regulation.
C) an increase in the demand for funds.
D) an increase in the issuance of Treasury securities.

Question

Quizplus · Accepted Answer

An increase in borrowing by the U.S. government typically leads to upward pressure on interest rates due to higher demand for funds, an increase in the demand for those funds, and an increase in the issuance of Treasury securities to finance the debt. It does not directly lead to a reduction in government regulation, which is more related to policy decisions than borrowing activities.

An Increase in Borrowing by the U