6
QuizMultiple Choice

Fiscal Policy: Taxes

Question 6 • IL-Economics

High government expenditures can lead to a bigger

Answer
A
revenue.
B
stimulus.
C
deficit.
D
surplus.

Explanation

When government spending is high, expenditures may exceed the money the government collects in revenue. That gap is a budget deficit, so the correct choice is “deficit.”

AI-written and checked against the verified answer.

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