If Congress chooses to lower taxes and fund programs with borrowed money, which of the following may result?

Question

Quizplus · Accepted Answer

Lowering taxes and funding programs with borrowed money will increase the deficit, leading to an increased demand for borrowing from the government, which will then increase interest rates. Higher interest rates will make borrowing more expensive for consumers and businesses, leading to a decrease in borrowing and potentially lower economic growth.

If Congress Chooses to Lower Taxes and Fund Programs with Borrowed