Which of these would reduce the fiscal deficit?

Collecting more tax revenue with spending unchangedCorrect answerYour answerRaising subsidiesCorrect answerYour answerBorrowing moreCorrect answerYour answerCutting tax rates with spending unchangedCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

More revenue covers more of the spending, so less needs to be borrowed.

Concept: Reducing the deficit
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsWhat deficits do

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Which of these would reduce the fiscal deficit?

Explanation