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To Minimize the Disincentives of Very High Taxes, a Policy

Question 65

Multiple Choice

To minimize the disincentives of very high taxes, a policy of tax smoothing requires a budget ______ in years of unusually low government revenue and a budget ______ in years of unusually high government expenditures.


A) surplus; deficit
B) deficit; surplus
C) surplus; surplus
D) deficit; deficit

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