In January 2013 certain tax rates increased, which were predicted to increase the federal government's tax revenue. An increase in tax revenue ________ the government's budget deficit and over time thereby ________ the amount of government debt.

Question

Quizplus · Accepted Answer

An increase in tax revenue decreases the government's budget deficit because it reduces the gap between government spending and revenue. Over time, this decrease in the budget deficit can lead to a decrease in the amount of government debt.

In January 2013 Certain Tax Rates Increased, Which Were Predicted