Historical evidence suggests, an increase in
the budget deficit tends to boost overall activity by the same amount (in dollar terms).
Not exact matches
Forecasters
tended to overestimate the drag from federal
budgets deficits during the late 1980s, the banking crisis in the early 1990s, and most of the subsequent crises that we faced during the past two decades.
Further, expectations of higher
budget deficits going forward will
tend to increase real long - term U.S. bond yields.