An increasing federal budget deficit will ________ the federal government debt as this will ________ the total value of Canadian government bonds outstanding.
A) increase; increase
B) increase; decrease
C) not impact; not change
D) not impact; be offset by

Question

Quizplus · Accepted Answer

An increasing federal budget deficit means the government is spending more than it earns, leading to borrowing more money, which increases the federal government debt and the total value of government bonds outstanding.

An Increasing Federal Budget Deficit Will ________ the Federal Government