An Increase in Government Spending Financed by Borrowing Changes People's

An increase in government spending financed by borrowing changes people's expectations about future taxation such that current consumption expenditures

A) fall. The increase in expenditures makes it likely that future taxes will create smaller distortions.
B) fall. The increase in expenditures makes it likely that future taxes will create larger distortions.
C) rise. The increase in expenditures makes it likely that future taxes will create smaller distortions.
D) rise. The increase in expenditures makes it likely that future taxes will create larger distortions.

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