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for the federal deficit to be lowered, a. the federal reserve must raise interest rates and lower the required reserve ratio. the federal government's expenditures must. For the federal deficit to be lowered, a) the federal gov't must decrease its spending and increase net exports. B) the federal reserve must raise interest rates and. for the federal deficit to be lowered select one: The federal government must increase its spending and increase net exports. The federal reserve must raise interest rates. to pay for a deficit, the federal government borrows money by selling treasury bonds, bills, and other securities. The national debt is the accumulation of this borrowing. study with quizlet and memorize flashcards containing terms like for the federal deficit to be lowered,, it is _____ difficult to effectively time fiscal policy than monetary policy. study with quizlet and memorize flashcards containing terms like for the federal deficit to be lowered, _____, the argument advanced by milton friedman for adopting a. study with quizlet and memorize flashcards containing terms like for the federal deficit to be lowered, if real gdp exceeded potential real gdp and inflation. for the federal deficit to be lowered, a. The federal reserve must raise interest rates and lower the required reserve ratio. one year’s federal budget deficit causes the federal government to sell treasury bonds to make up the difference between spending programs and tax revenues. the good news is that there are many options available to policymakers to put our nation on a better path. Recently, the congressional budget office (cbo).