Which of the Following Policies Will Reduce the Budget Deficit

question 131

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.

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Definitions:

Common Dividends

Profits distributed to shareholders of common stock, reflecting the company's earnings and financial health.

Effective Tax Rate

The average rate at which an individual or business is taxed on their total income, after deductions and credits.

GAAP

Generally Accepted Accounting Principles, which are a collection of commonly followed accounting rules and standards for financial reporting.

Quarterly Income

The net income earned by a company during a three-month period, typically reported in quarterly financial statements.