In the short run,a federal budget deficit will most likely _____.
A)stimulate aggregate supply
B)reduce federal debt
C)boost economic growth
D)reduce national saving
E)boost domestic saving

Question

Quizplus · Accepted Answer

A federal budget deficit means that the government is spending more than it is taking in through taxes. This will usually require the government to borrow money, which will reduce national saving.

In the Short Run,a Federal Budget Deficit Will Most Likely