Which of the following impacts would economists expect to result from chronic budget deficits?

Question

Quizplus · Accepted Answer

Chronic budget deficits will lead to government borrowing, which can displace private investments and eventually result in a drag on economic growth. This can lead to inefficient allocation of resources as the government may have to bear a higher debt burden and control a larger share of the economy's resources.

Which of the Following Impacts Would Economists Expect to Result