Question 7 of 10
Which situation is most likely to.result in a government having a budget
deficit for a year?
A. A government wants to make sure that businesses have more
money available for investment.
B. A government wants to quickly pay back loans it received from
other countries over the past decade.
O.
C. A government wants to greatly reduce the amount of discretionary
spending in its budget.
D. A government wants to create an expensive new health care
program without raising taxes.
MIT

Respuesta :

Answer:

d

Explanation:

took the test on ap3x

The situation that is most likely to develop in the government's budget deficit for a particular year would be:

D). A government wants to create an expensive new health care  program without raising taxes.

  • 'Budget deficit' is characterized as the situation when the government's aggregate expenditures exceed their aggregate revenue/income.
  • This displays the financial situation of a country as excess deficit may bring deflation in the country.
  • In the given situation, if the government increases its expenditure(through investment in health care programs) without causing a hike in the taxes, it will cause the overall expenditures to increase than the total income.

Hence, a budget deficit will take place. Thus, option D is the correct answer.

Learn more about 'Budget Deficit' here:

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