Question

The government increases taxes. What might be a reason for this change in fiscal policy?. . A. A deficit due to improving nationwide public transportation. . B. A deficit due to more monies flowing in from investors. . C.A surplus due to greater amounts of income from exports. . D.A surplus due to more government spending on building roads

Answer 1

the correct answer is a

Step-by-step explanation:

got it right

Answer 2

The correct answer should be A. A deficit due to improving nationwide public transportation.

Since the country is experiencing a deficit in the budget, increasing taxes would mean filling up the treasury more rapidly. There is a deficit in this situation because of the improvement of the public transportation system which needs to be paid for.