An increase in the budget deficit is
A) an increase in public saving.
B) a decrease in private saving.
C) an indication of a spendthrift government.
D) a decrease in public saving.
E) an increase in private saving.

Question

Quizplus · Accepted Answer

An increase in the budget deficit means that the government is spending more money than it is bringing in through revenue. This means that public saving is decreasing as the government is not able to save any money.

An Increase in the Budget Deficit Is