Assume the U.S.government was to decide to increase the budget deficit.This action will most likely cause __________ to increase.

Name: Assume the U.S.government was to decide to increase the budget deficit.This action will most likely cause __________ to increase.
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Question

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Increasing the deficit raises government borrowing, increases the demand for funds, and thus increases the interest rates.Deficit spending is also used to stimulate the economy by encouraging increasing the output of the economy.