Which of the following is not a result of a higher federal budget deficit?

Question

Quizplus · Accepted Answer

A higher federal budget deficit would lead to higher interest rates, as the government would need to borrow more money to finance the deficit. This would lead to a stronger currency, as foreign investors would want to invest in the United States to take advantage of the higher interest rates. However, an appreciation of the currency would make exports more expensive and less competitive on the global market, leading to a decrease in exports. It would also make foreign inputs cheaper, which would increase the demand for foreign goods and decrease the demand for domestic goods, leading to a fall in the price of foreign inputs. None of these results would lead to a rise in exports.

Which of the Following Is Not a Result of a Higher