Statement I: The federal budget deficit more than doubled between 1987 and 1992.
Statement II: High federal budget deficits tend to push up real interest rates.

Question

Quizplus · Accepted Answer

Statement I is true as the federal budget deficit increased from $149 billion in 1987 to $290 billion in 1992. Statement II is also true as high deficits tend to create demand for borrowing, pushing up interest rates.

Statement I: the Federal Budget Deficit More Than Doubled Between