To Minimize the Disincentives of Very High Taxes, a Policy

question 85

Multiple Choice

To minimize the disincentives of very high taxes, a policy of tax smoothing requires a budget ______ in years of unusually low government revenue and a budget ______ in years of unusually high government expenditures.

• A) surplus; deficit
• B) deficit; surplus
• C) surplus; surplus
• D) deficit; deficit

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Definitions:

Sale of Business

The process or transaction in which ownership of a business is transferred from one party to another.

Breach of Contract

The violation of any terms or conditions in a contract without legal justification.

Valid License

An official permission or permit that meets all legal requirements to engage in a particular activity or profession.

Employment Agreement

An official document outlining the terms and conditions of employment between an employer and employee.