Which of the following is not a possible implication of federal budget deficits?
A) crowding out
B) increased interest rates
C) inflation
D) increased trade deficits
E) depreciation of the dollar

Question

Quizplus · Accepted Answer

Depreciation of the dollar is not necessarily a direct implication of federal budget deficits. While budget deficits can lead to a variety of economic outcomes, such as crowding out, increased interest rates, inflation, and potentially increased trade deficits due to changes in domestic consumption and investment patterns, the relationship between budget deficits and currency value is more complex and influenced by a broader set of factors including trade balances, interest rates, and overall economic health.

Which of the Following Is Not a Possible Implication of Federal