Question

Which of these contributes to a budget deficit? . A. Buying bonds and decreasing spending on federal programs. B. Decreasing taxes and increasing spending on federal programs. C. Increasing taxes and buying bonds. D. Decreasing spending on federal programs and increasing taxes

Answer 1

Definitely, the correct answer on the question represented above is B.Decreasing taxes and increasing spendingon federal programs. Taxes are needed to help the government pay for important common things, for example - social programs, common goods. And if we limit taxes in order to increase the avings, it will lead to deficit.