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18 July, 09:41

Which of these scenarios would be LEAST likely to cause or worsen a Federal budget deficit?

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Answers (2)
  1. 18 July, 10:33
    0
    A deficit must be paid. If it isn't, then it creates debt. Each year's deficit adds to the debt. As the debt grows, it increases the deficit in two ways. First, the interest on the debt must be paid each year. This increases spending while not providing any benefits. Second, higher debt levels can make it more difficult to raise funds. Creditors become concerned about the borrower's ability repay the debt. When this happens, they demand higher interest rates to provide a greater return on this higher risk.
  2. 18 July, 13:23
    0
    Increased revenues from taxes on corporate profits.

    Explanation:

    A
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