Question

How might a government deficit affect the circular flow

of income?
O Taxes could be increased to fix the deficit, giving
consumers more money to spend.
O Taxes could be decreased to fix the deficit, giving
consumers less money to spend.
O Government spending could rise due to the deficit,
and the economy could grow.
Government spending could drop due to the deficit,
and the economy could slow down.

Answer 1

Answer: D.) Government spending could drop due to the deficit and the economy could slow down

Answer 2

Answer: The correct answer is D.) Government spending could drop due to the deficit and the economy could slow down

Explanation: This is the correct choice on edge 2020