Answer to Question #145729 in Economics for Shahir Sheikh

Question

How might lowering income taxes during an economic downturn decrease the national debt?

a. by weakening the economy, decreasing revenues, and increasing the deficit
b. by weakening the economy, decreasing revenues, and decreasing the deficit
c. by stimulating the economy, increasing revenues, and decreasing the deficit
d. by stimulating the economy, decreasing revenues, and increasing the deficit

Answer 1

c. by stimulating the economy, increasing revenues, and decreasing the deficit