Advanced Placement (AP), 27.02.2021 07:00 isabella4141

How might a government deficit affect the circular flow of income? Taxes could be increased to fix the deficit, giving consumers more money to spend.
Taxes could be decreased to fix the deficit, giving consumers less money to spend.
Government spending could rise due to the deficit, and the economy could grow.
Government spending could drop due to the deficit, and the economy could slow down.

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How might a government deficit affect the circular flow of income? Taxes could be increased to fix...