An Increase in Taxes or a Decrease in Spending During

Multiple Choice

An increase in taxes or a decrease in spending during an economic expansion can

A) increase the budget deficit but pay off some of the government debt.
B) work to decrease the budget deficit and pay off some of the government debt.
C) work to decrease the budget deficit but will not pay off any of the government debt.
D) increase the budget deficit and increase the size of the government debt.
E) work to decrease the budget deficit and increase the government debt.