Answer
It decreases.
Work Step by Step
Heating the balloon expands it. Density = $\frac{mass}{volume}$, so density decreases as the balloon volume increases.
This is discussed on page 229.
Conceptual Physics (12th Edition)
by Hewitt, Paul G.
Published by
Addison-Wesley
ISBN 10:
0321909100
ISBN 13:
978-0-32190-910-7
Chapter 12 - Think and Explain - Page 242-243: 44
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