Which of the following is unlikely to occur as a result of a sustained budget deficit?

Question

Quizplus · Accepted Answer

A sustained budget deficit indicates that the government is spending more than it is earning. This could lead to an increase in inflation (B) due to an increase in the money supply, a decrease in foreign investment (C) due to a lack of confidence in the economy, or a decrease in GDP (D) due to reduced economic growth. However, a sustained budget deficit is unlikely to result in a decrease in the trade deficit (A) as this is typically influenced by factors such as exchange rates and international competitiveness.

Which of the Following Is Unlikely to Occur as a Result