If fiscal stimulus creates a large budget ________, then in the long run economic growth ________.
A) surplus; increases
B) surplus; decreases
C) deficit; increases
D) deficit; decreases
E) None of the above answers is correct.

Question

Quizplus · Accepted Answer

A large budget deficit can lead to higher interest rates and crowding out of private investment, which can decrease long-term economic growth.

If Fiscal Stimulus Creates a Large Budget ________, Then in the Long