A decrease in government spending and an increase in taxes will cause the:

Name: A decrease in government spending and an increase in taxes will cause the:
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Question

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Decreasing government spending and increasing taxes will result in less money going out from the government and more money coming in, respectively. This will lead to a decrease in the budget deficit. However, it may not necessarily lead to a decrease in the government debt if the deficit is still greater than the surplus.

A Decrease in Government Spending and an Increase in Taxes