The standard view in economics is that tax cuts without ________ will ________ the budget deficit resulting in ________.
A) spending cuts; increase; crowding out investment
B) spending cuts; decrease; crowding out investment
C) increasing spending; decrease; unemployment
D) increasing spending; increase; crowding out investment
E) spending cuts; decrease; unemployment

Question

Quizplus · Accepted Answer

Tax cuts without spending cuts will increase the budget deficit, which can lead to crowding out investment as the government borrows more, potentially raising interest rates and reducing private investment.

The Standard View in Economics Is That Tax Cuts Without