Federal spending pushes the federal deficit up,causing an increase in interest rates.What is the LEAST likely result of this occurrence?
A) unemployment increases
B) it becomes more expensive to borrow money
C) businesses expand at a slower rate
D) consumer spending increases

Question

Quizplus · Accepted Answer

An increase in interest rates caused by federal spending pushing the federal deficit up would make it more expensive for consumers to borrow money, leading to a decrease in consumer spending, rather than an increase. Therefore, it is least likely that consumer spending would increase in this situation.

Federal Spending Pushes the Federal Deficit Up,causing an Increase in Interest