Question

How does the government deal with a budget deficit

A.) Buy bonds, increase spending, and increase taxes
B.) Increase taxes, sell bonds, and decrease spending
C.) Print money, buy bonds, and increase spending
D.) Sell stocks, decrease spending, and provide tax refunds

Answer 1

Option B. Increase taxes, sell bonds and decrease spending. This is the most appropriate action a government can take against a budget deficit in view of the problems presented by a budget crisis in which it is necessary to take appropriate measures and controls to help fight the deficit and accelerate production and the new acquisition of goods that increase the budget.