When a government has a budget deficit and has reduced its spending, what other step can be taken to generate more revenue, besides issuing government bonds?
A) reduce unemployment
B) raise interest rates
C) increasing exports
D) raise taxes

Question

Quizplus · Accepted Answer

When a government has a budget deficit and has reduced its spending, the best option to generate more revenue is to raise taxes. This allows the government to collect more income from its citizens and businesses, helping to offset the deficit. While reducing unemployment, raising interest rates, and increasing exports can all have positive economic effects, they do not directly generate revenue for the government in the same way that raising taxes does.

When a Government Has a Budget Deficit and Has Reduced