An increase in the rate of economic growth is likely to

Question

Quizplus · Accepted Answer

When the rate of economic growth increases, it generally leads to an increase in tax revenue due to higher employment and increased consumption. This increase in tax revenue can then help to decrease the federal budget deficit. Additionally, higher economic growth can also lead to a lower demand for government programs such as unemployment benefits, which can also help to decrease the budget deficit.

An Increase in the Rate of Economic Growth Is Likely