Other things the same,a government budget deficit
A)reduces public saving,but not national saving.
B)reduces national saving,but not public saving.
C)reduces both public and national saving.
D)reduces neither public saving nor national saving.

Question

Quizplus · Accepted Answer

A government budget deficit reduces public saving because the government is spending more than it is earning. This also reduces national saving, which is the sum of private and public saving.

Other Things the Same,a Government Budget Deficit