Question

Suppose that a federal election is coming soon and the government has been running persistent large budget deficits. Constitutional economists would most likely urge ___________________ in order to eliminate future budget deficits.

Answer 1

Increase taxes.

Step-by-step explanation:

A budget deficit occurs when the government's expenses exceeds revenues. It indicated that the financial health of economy is not good. The government that wants to correct budget deficit must cut back on various expenditures and look into ways to increase revenue. It can raise taxes and cut spending. Budget surplus is the opposite of budget deficit. In budget surplus government's revenue exceeds government spending.