An increase in the government's budget deficit means
A)public saving is greater than $0 and increasing.
B)public saving is greater than $0 and decreasing.
C)public saving is less than $0 and increasing.
D)public saving is less than $0 and decreasing.

Question

Quizplus · Accepted Answer

An increase in the government's budget deficit means that the government is spending more than it is collecting in revenue, which leads to a decrease in public saving. Therefore, public saving is less than $0 and decreasing.

An Increase in the Government's Budget Deficit Means