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    Question

    The government deficit can be reduced by ______ taxes or _____ expenditure.

    A increasing; increasing Correct Answer Incorrect Answer
    B increasing; decreasing Correct Answer Incorrect Answer
    C decreasing; increasing Correct Answer Incorrect Answer
    D maintaining; increasing Correct Answer Incorrect Answer

    Solution

    The government deficit can be reduced by increasing taxes or decreasing expenditure. A deficit is an amount by which the expenditures in a budget exceed the income. Amount of money in the set budget by which the government expenditure exceeds the government income amount.

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