The federal budget deficit can be reduced by

Question

Quizplus · Accepted Answer

Raising taxes can increase government revenue, which can help reduce the budget deficit. It is one of the most direct ways to address the deficit without increasing government spending or transfer payments, which can exacerbate the deficit problem. Higher interest rates do not necessarily reduce the deficit and increasing government spending or transfer payments without a corresponding increase in revenue can actually make the deficit worse.

The Federal Budget Deficit Can Be Reduced by