Which of the following would not increase an existing budget deficit?
A)an increase in interest on the government debt
B)an increase in government expenditures on goods and services
C)an increase in government transfer payments
D)an increase in indirect taxes
E)a decrease in investment income

Question

Quizplus · Accepted Answer

An increase in indirect taxes would increase government revenue, which could potentially decrease an existing budget deficit.

Which of the Following Would Not Increase an Existing Budget