Which of the following will definitely reduce a budget deficit and provide fiscal restraint?
A) Greater government spending and lower taxes.
B) Greater government spending and higher taxes.
C) Lower government spending and lower taxes.
D) Lower government spending and higher taxes.

Question

Quizplus · Accepted Answer

Lowering government spending and raising taxes will both decrease the budget deficit and encourage fiscal responsibility. Increasing government spending and lowering taxes would likely increase the deficit, while increasing both spending and taxes could potentially have little effect on the deficit.

Which of the Following Will Definitely Reduce a Budget Deficit