In fiscal year 2008, the U.S. government ran a deficit of about $459 billion. In fiscal year 2009, the government ran a deficit of about $1,413 billion. This change would be expected to have

Question

Quizplus · Accepted Answer

The increase in the deficit from 2008 to 2009 suggests that the government was borrowing more money, which would increase the demand for loans and raise interest rates. Additionally, investors may have been less willing to invest in the government, which would decrease overall investment. Therefore, the expected impact would be increased interest rates and decreased investment, as stated in choice D.

In Fiscal Year 2008, the U