Correct Answer: will put upward pressure on interest rates

Solution : The correct answer is will put upward pressure on interest rates .

When a government's expenditure on goods, services, or transfer payments exceeds its tax collections, it has a budget deficit. Governments borrow money to cover budgetary shortfalls, and each time they do so, the national debt grows. Increased debt levels, depreciation of the currency, and inflation are all possible effects of a large budget imbalance. The result is an increase in the central bank's benchmark interest rates.