The federal budget deficit can be reduced by

Question

Quizplus · Accepted Answer

Raising taxes would increase revenue for the government, thereby reducing the budget deficit. This is because the government can use the additional revenue to pay off debts or spend it on reducing the deficit. Other options such as raising government spending, transfer payments, or reducing consumption would increase the deficit. Higher interest rates may reduce government spending and discourage people from borrowing, but this would not be enough to reduce the deficit significantly.

The Federal Budget Deficit Can Be Reduced by