Final answer:
Reducing the government deficit could lead to cuts in educational support for college students, decreased public spending impacting young professionals' job prospects, and reduced disposable income for middle-income families due to increased taxes or service cuts.
Step-by-step explanation:
A plan for reducing the government deficit could affect various individuals in society differently. For a college student, such a plan might lead to cuts in educational grants and loans, making higher education less affordable and potentially increasing student debt. A young professional may experience limited job opportunities if government spending on public projects is decreased. Similarly, a middle-income family could see a reduction in government services that they depend on, or an increase in taxes which would reduce their disposable income.
Moreover, when the government runs a budget deficit, this might encourage private saving among these groups out of concern for future tax increases to cover government borrowing. Conversely, during times of budget surpluses or reduced deficits, interest rates might fall, and the anticipation of future tax cuts could reduce the incentive to save, thus influencing spending behaviors.