If a government shifts from a balanced budget to a budget deficit, which of the following is a likely consequence?

When a government shifts from a balanced budget to a budget deficit, it means that it is spending more money than it is earning through taxes and other revenues. This can lead to increased borrowing, as the government needs to find ways to cover the extra expenses. For example, if a government spends $1 billion more than it collects in taxes, it might borrow that money by issuing bonds. Over time, this can result in higher national debt, which means the government will need to pay interest on the borrowed money, potentially leading to higher taxes or cuts in services in the future. Ultimately, while a budget deficit can help fund important projects now, it can create financial challenges later on.