Imagine the federal government has a national debt of $10.2 trillion. Congress's budget for the coming year includes a spending projection of $4.2 billion. Tax revenue projects $3.8 billion. Which fiscal policy would Congress have to adopt to maintain spending levels without increasing the debt?

Cut public programs

Increase taxes

Lower discount rates

Reduce open-market operations

Question

Imagine the federal government has a national debt of $10.2 trillion. Congress's budget for the coming year includes a spending projection of $4.2 billion. Tax revenue projects $3.8 billion. Which fiscal policy would Congress have to adopt to maintain spending levels without increasing the debt?

Cut public programs

Increase taxes

Lower discount rates

Reduce open-market operations

anonymous · Answer

@ManImStumped

anonymous · Answer

It would be Increase Taxes, since that is the only one to use without reducing spending