Government Officials of Country Z Estimate That Next Year's Public

Multiple Choice

Government officials of Country Z estimate that next year's public programs will cost $19 million but that tax revenues will be only $15 million.The officials could avoid a deficit next year by adopting which of the following fiscal strategies?

A) Reduce the cost of public programs by $4 million.
B) Increase taxes by $4 million.
C) Borrow $4 million by issuing new government bonds.
D) All of these strategies will avoid a deficit.