Which of the following is a consequence of a growing federal budget deficit in the United States?

Question

Quizplus · Accepted Answer

A growing federal budget deficit leads to an increase in the federal debt outstanding, as the government borrows more money to cover the shortfall in revenues. The opposite effect would occur if the budget deficit were to decrease, as the government would need to borrow less and could use more of its revenue to pay down existing debt. Options A, C and D are not consequences of a growing federal budget deficit.

Which of the Following Is a Consequence of a Growing