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

Question

Quizplus · Accepted Answer

Decreasing the budget deficit would require the government to borrow less money, which would decrease the demand for loans and ultimately cause interest rates to decrease. Additionally, if the government is borrowing less money, it means they are spending less, which could potentially lead to cuts in government programs or jobs, resulting in a decrease in unemployment.