The U.S. government's budget deficit has a significant impact on the bond market but does not affect the stock market.

Question

Quizplus · Accepted Answer

Both the bond and stock markets can be affected by the U.S. government's budget deficit. A larger deficit can lead to higher interest rates, affecting bond prices and potentially influencing stock market valuations through increased borrowing costs for companies.

The US Government's Budget Deficit Has a Significant Impact on the the Bond