Assume the U.S. government was to decide to increase the budget field. Holding all else constant, this will cause ______ to increase.

A) interest rates
B) government borrowing
C) unemployment
D) interest rates and government borrowing
E) None of the options are correct.

Government Borrowing

The process by which a government raises funds to finance its expenditure that exceeds revenue, typically through issuing debt securities.

Budget Field

A category within a budget, specifying an area of financial activity, such as revenues, expenses, or investments.

Interest Rates

The cost of borrowing money or the return on invested funds, typically expressed as a percentage.