Which combination of policies is most likely to decrease government deficits in the short-term?

Question

Quizplus · Accepted Answer

Higher taxes would increase government revenue, while reduced spending would decrease government expenditures. This combination would lead to a decrease in government deficits in the short-term. Increased spending and higher taxes would likely lead to a larger deficit, while lower taxes and higher interest rates would also likely lead to a larger deficit. Decreased spending and lower interest rates may lead to a decrease in deficits in the long-term, but not necessarily in the short-term.

Which Combination of Policies Is Most Likely to Decrease Government