The government increases taxes. what might be a reason for this change in fiscal policy? . a. a deficit due to improving nationwide public transportation. b. a deficit due to more monies flowing in from investors. c. a surplus due to greater amounts of income from exports. d. a surplus due to more government spending on building roads

The correct answer should be A. A deficit due to improving nationwide public transportation.

Since the country is experiencing a deficit in the budget, increasing taxes would mean filling up the treasury more rapidly. There is a deficit in this situation because of the improvement of the public transportation system which needs to be paid for.

Ais your correct answer