What means would be best to reduce the current U.S. government deficit: (a) Cuts in mandatory...
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What means would be best to reduce the current U.S. government deficit: (a) Cuts in mandatory spending programs; (b) Cuts in discretionary spending; and/or (c) Increased taxation? Explain why the particular actions you recommend are the best approach for reducing the deficit.
Homework Answers
Answer - Option B and C
Cuts in discretionary spending and Increase in Taxation
The discretionary spending is rhe spending that can be avoided by the government without affecting any element of the economy.
The mandatory spending cannot be prevented , thus costs are necessary to be incurred there. The taxation if increased will increase the government revenue.
Thus option B and C if implemented together can result in reduce the government deficit.
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