Sustained federal deficits tend,other things the same,________.

Question

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Sustained federal deficits tend to increase income inequality in the United States. This is because the government has to finance its deficit spending through borrowing, which increases the demand for loanable funds and raises interest rates. This, in turn, tends to benefit wealthy individuals who have more savings and investments, while making it harder for lower-income individuals to access credit for things like education or small-business loans. Additionally, deficits can lead to cuts in social welfare programs, which tend to have a more pronounced impact on lower-income households.

Sustained Federal Deficits Tend,other Things the Same,________