An increase in government spending and a decrease in taxes will cause the:

Name: An increase in government spending and a decrease in taxes will cause the:
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Question

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When both government spending and taxes decrease, it means that the government is spending more while collecting less revenue. This will lead to higher deficits, increasing the amount of money that the government needs to borrow to finance its operations. Thus, the budget deficit will increase.

An Increase in Government Spending and a Decrease in Taxes