If people are spending all the available money, when the U.S. government borrows to finance a deficit,

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When the U.S. government borrows to finance a deficit, especially in a situation where people are already spending all available money, it typically leads to an increase in interest rates. This is because the government competes for the same pool of loanable funds that businesses and individuals need, driving up the cost of borrowing.

If People Are Spending All the Available Money, When the U.S