Respuesta :
Everything else equal, an increase in the government budget deficit would Increase the government's demand for funds and Increase the interest rate in the economy
An overrun in spending over income results in a budget deficit, which can be a sign of a nation's financial stability. The phrase is frequently used to describe government spending rather than that of companies or people. Budget deficits have an impact on the total amount a nation owes to creditors, the total of its annual budget deficits, and the national debt.
The government experiences losses during times of poor economic development or economic recession. Workers who leave their jobs pay less in taxes, which reduces the government's revenue.
To learn more about budget deficit refer here:
https://brainly.com/question/28166308
#SPJ4
