Fiscal restraint will definitely occur if the government:
A) Reduces its spending and reduces tax rates.
B) Reduces its spending and increases tax rates.
C) Increases its spending and reduces tax rates.
D) Increases its spending and increases tax rates.

Question

Quizplus · Accepted Answer

Fiscal restraint refers to the government's efforts to reduce budget deficits and slow down the growth of national debt. In order to achieve this, the government needs to adopt policies that reduce its spending and increase its revenue. Option B best fits this definition as it involves reducing government spending and increasing tax rates, which will help reduce the budget deficit and slow down the growth of national debt. Option A would reduce revenue, making it less effective for fiscal restraint. Option C and D involve increasing spending, which would be counterproductive to fiscal restraint.

Fiscal Restraint Will Definitely Occur If the Government