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Multiple choice economics public debt public debt main feature of tax arbitration, tribunal adjudication and alternate dispute resolution

Which of the following is most likely to cause an increase in the size of the national debt?

  1. An increase in taxation

  2. A rise in long-term government borrowings

  3. An increase in national income

  4. A reduction in government expenditure.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

National debt increases when the government spends more than it earns, which is facilitated by long-term government borrowings.