Which of the following is likely to occur if the government of an economy tries to reduce its structural deﬁcit?
A) An increase in government spending.
B) A cut in taxes.
C) A fall in company proﬁts.
D) A rise in cyclical deﬁcit.

Question

Quizplus · Accepted Answer

Reducing a structural deficit typically involves reducing government spending or increasing taxes, which can lead to lower company profits due to decreased consumer spending or higher tax burdens.

Which of the Following Is Likely to Occur If the Government