An increase in the rate of economic growth is likely to

A) increase the federal budget deficit.
B) decrease the federal budget deficit.
C) have no effect on the federal budget deficit.
D) increase the federal budget deficit only if inflation decreases.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, usually measured by the rise in GDP.

Federal Budget Deficit

A situation where the federal government's expenditures exceed its revenues within a given fiscal year.