A government is facing a significant budget deficit due to high levels of public spending and declining tax revenues. To address this, several measures are being considered, including cutting public expenditures, increasing taxes, and implementing more efficient tax collection methods. The impact of a budget deficit on an economy can include increased national debt and potential inflationary pressures. In this situation, the most effective approach to address the budget deficit would be: A) Borrowing more funds internationally B) Cutting essential public services C) Increasing taxes and improving tax collection D) Privatizing all public services
A government is facing a significant budget deficit due to high levels of public spending and declining tax revenues. To address this, several measures are being considered, including cutting public expenditures, increasing taxes, and implementing more efficient tax collection methods. The impact of a budget deficit on an economy can include increased national debt and potential inflationary pressures. In this situation, the most effective approach to address the budget deficit would be:
A) Borrowing more funds internationally
B) Cutting essential public services
C) Increasing taxes and improving tax collection
D) Privatizing all public services
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