One consequence of government deficits is
A) lower interest rates.
B) lower taxes.
C) reduced government borrowing.
D) reduced consumer spending.
E) redistribution of the tax burden from one group to another.

Question

Quizplus · Accepted Answer

Government deficits often lead to higher levels of government debt, which may necessitate tax increases or spending cuts in the future to balance the budget. This can result in a redistribution of the tax burden from one group to another, as some individuals or groups may be affected more than others by these changes.

One Consequence of Government Deficits Is