. Which statement regarding fiscal deficits is most accurate? A. Higher government spending may lead to higher interest rates and lower privatesector investing. B. Central bank actions that grow the...

. Which statement regarding fiscal deficits is most accurate?

A. Higher government spending may lead to higher interest rates and lower privatesector investing. B. Central bank actions that grow the money supply to address deflationary conditions decrease fiscal deficits. C. According to the Ricardian equivalence, deficits have a multiplicative effect on consumer spending