When the government borrows from the public,the result is

A) a decrease in the federal deficit.
B) a decrease in unemployment.
C) an increase in real GDP.
D) downward pressure on interest rates.
E) an increase in the demand for loanable funds.

Public Borrowing

The process by which a government finances its expenditure by raising loans through the issuance of securities or borrowing from financial institutions.

Federal Deficit

The fiscal year difference when the U.S. Government's expenditures exceed its revenues, necessitating borrowing to cover the gap.

Real GDP

The measure of a country's economic output adjusted for inflation, reflecting the true value of goods and services produced.