An increase in spending by the U.S.government will result in all of the following except:
A)Upward pressure on interest rates
B)Reduction in government borrowing
C)An increase in the demand for funds
D)An increase in the issuance of Treasury securities

Question

Quizplus · Accepted Answer

An increase in government spending results in an increase in government borrowing, which would lead to an increase in the issuance of Treasury securities and an increase in the demand for funds. However, it would not result in a reduction in government borrowing.

An Increase in Spending by the U