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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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