In fiscal year 2008,the U.S.government ran a deficit of about $459 billion.In fiscal year 2009,the government ran a deficit of about $1,413 billion.Other things the same,this change would be expected to have

Question

Quizplus · Accepted Answer

When the government runs a large deficit, it may lead to an increase in interest rates due to increased demand for borrowing money, which may in turn decrease investment as borrowing becomes more expensive. Therefore, the answer is D.

In Fiscal Year 2008,the U