In fiscal year 2001, the U.S. government ran a surplus of about $127 billion. In fiscal year 2002, the government ran a deficit of $159 billion. This change would be expected to have

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When the government runs a deficit, it means that they are borrowing more money, which increases the demand for loans and can drive up interest rates. Higher interest rates make it more expensive for individuals and businesses to borrow money, which can lead to decreased investment. Therefore, the change from a surplus to a deficit would be expected to result in increased interest rates and decreased investment, as described in choice D.

In Fiscal Year 2001, the U