Which of the Following Would Not Increase an Existing Budget

question 44

Multiple Choice

Which of the following would not increase an existing budget deficit?

• A)an increase in interest on the government debt
• B)an increase in government expenditures on goods and services
• C)an increase in government transfer payments
• D)an increase in indirect taxes
• E)a decrease in investment income

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Definitions:

Tax Rate

The rate at which a person or business entity is charged taxes by the state.

Budget Deficit

The financial situation where a government's expenditures surpass its revenues within a specific period, leading to borrowing or using saved reserves.

Government Spending

The total amount of public sector expenditure on goods and services, including salaries, defense, and welfare programs.

Gross Domestic Product

The total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.