When the government's budget deficit increases
A)the government is borrowing less and public savings falls.
B)the government is borrowing less and public savings increases.
C)the government is borrowing more and public savings falls.
D)the government is borrowing more and public savings increases.

Question

Quizplus · Accepted Answer

When the government's budget deficit increases, it means the government is spending more than it is receiving in revenue. To meet its spending needs, the government will have to borrow more money from public savings or from other sources. This means that the government is borrowing more and public savings will fall.

When the Government's Budget Deficit Increases