Final answer:
Increasing the government budget deficit typically results in a decrease in national saving because the government's negative saving is larger, although private saving may increase somewhat but not usually enough to fully offset the increased deficit.
Step-by-step explanation:
When the government increases the government budget deficit, national saving generally decreases. This statement holds true because national saving is the sum of private saving and the government's saving, which is negative when the government is running a deficit. Increasing the deficit implies that the government's negative saving becomes larger, thus reducing national saving. It's important to note, however, that private saving does tend to increase somewhat when the government runs larger deficits but usually not enough to offset the increase in the deficit. Additionally, this relationship can be influenced by other economic factors and circumstances, meaning the effect can vary.