Question

Which best describes the economic effect that results from the government running a budget deficit?

Answer 1

Demand increases, pushing producers to increase supply

Explanation: xepa said so

Answer 2

A budget deficit is when the government has more expenditures than income. The effect of this on the country's economy depends. For short term basis, it would boost the economy because more of the money is spent on projects for the development of the country. But in the long term, it would increase the country's debt and they will still have to pay it eventually.