According to Olney’s truth table, if a premise is true but the conclusion is false, the argument is false. In the given argument, “If the federal government budget deficit increases” is the premise, and “there will be decreased long-run economic growth” is the conclusion”; therefore, if the long-run economic growth does not decreases when there’s an increased federal government budget deficit, the argument is false. The implicit assumption is if the government budget deficit increases, government will spend less money and, at the same time, increases taxes to pay off the debt; increase in tax will result reduction in household disposable income and household saving so that household consumption will be downscaled. The lowered saving and consumption
