Which of the Following Policies Will Reduce the Budget Deficit

question 3

Multiple Choice

Which of the following policies will reduce the budget deficit while achieving greater fiscal restraint?

• A)More government expenditure and higher taxes.
• B)More government expenditure and lower taxes.
• C)Less government expenditure and higher taxes.
• D)Less government expenditure and lower taxes.

---

Definitions:

Operating Costs

Expenses associated with the day-to-day functions of a business, excluding costs related to production.

Annual Cost Savings

The reduction in costs achieved during a year due to various savings measures or efficiencies.

Discount Factor

A multiplier used in discounted cash flow (DCF) analyses to determine the present value of future cash flows, reflecting the time value of money.

Proposed Project

An outlined plan or proposal for undertaking a specific activity or achieving a goal that requires approval or funding.