As a result of government borrowing to cover deficits, it is often anticipated that citizens will increase the supply of savings to provide themselves with funds to pay anticipated increases in future taxes. Then it follows that increased government borrowing will: a. reduce private investment. b. increase private investment. c. have no effect of private investment. d. increase interest rates. e. both (a) and (d) 43. Which of the following is true about the federal government budget balance in the United States? a. The federal budget has never had a surplus. b. The federal budget had a surplus every year from 1970 to 2008. c. The federal budget had a surplus from 1998 until 2001. d. The federal budget had a deficit from 1998 until 2001. 44. A bond that is backed by the tolls collected from a bridge to be constructed from the proceeds of the bond is an example of: a. a general obligation bond. b. a non-obligation bond. c. a revenue bond. d. none of the above.