Which of the following is not an expected consequence of balancing the federal government's budget?

Question

Quizplus · Accepted Answer

Balancing the federal government's budget would not lead to increased borrowing from foreigners. In fact, it would likely lead to decreased borrowing as the government would not need to borrow as much to finance its operations. Although reduced interest payments to foreigners are possible consequences of a balanced budget, this is not the only expected consequence. Increased private investment is also a potential outcome as a balanced budget would signal stability and financial responsibility, making the economy more attractive to investors.

Which of the Following Is Not an Expected Consequence of Balancing