Increased deficit spending by the government is likely to result in

Name: Increased deficit spending by the government is likely to result in
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Increased deficit spending by the government increases the demand for credit, which in turn leads to higher interest rates. The increase in interest rates is a result of the government's borrowing from the market to finance its deficit, which increases the demand for credit, putting upward pressure on interest rates.

Increased Deficit Spending by the Government Is Likely to Result