Which of the Following Is True of Federal Deficit

Multiple Choice

Which of the following is true of federal deficit?

A) Other things held constant, the larger the federal deficit, the lower the level of government expenses.
B) Other things held constant, the larger the federal deficit, the higher the level of the national income.
C) Other things held constant, the larger the federal deficit, the more taxes the government collects.
D) Other things held constant, the larger the federal deficit, the lower the inflation rate in the economy of a country.
E) Other things held constant, the larger the federal deficit, the higher the level of interest rates on borrowings.