A federal budget deficit _____
A) stimulates aggregate supply.
B) increases federal debt.
C) boosts economic growth.
D) boosts national saving.
E) boosts domestic saving.

Question

Quizplus · Accepted Answer

A federal budget deficit occurs when the government spends more money than it collects in revenue, increasing the federal debt. This can lead to concerns about the long-term sustainability and potential economic consequences of accumulating debt.

A Federal Budget Deficit _____