_____ is the most preferred way for one to deal with budget deficits.
A) Liquidating savings and investments
B) Borrowing money from relatives
C) Cutting low-priority expenses
D) Increasing income
E) Paying all short-term liabilities

Question

_____  is the most preferred way for one to deal with budget deficits.
A) Liquidating savings and investments
B) Borrowing money from relatives
C) Cutting low-priority expenses
D) Increasing income
E) Paying all short-term liabilities

Quizplus · Accepted Answer

Cutting low-priority expenses is the best way to deal with budget deficits as it helps in reducing the immediate expenses and brings down the deficit amount. Liquidating savings and investments and borrowing money from relatives can have long-term consequences and should only be done as a last resort. Increasing income is also a good option, but it may not be easy to achieve in the short-term. Paying all short-term liabilities may reduce the debts but does not address the root cause of the deficit.

_____ Is the Most Preferred Way for One to Deal