Which Of The Following Statements Best Explains Why The Red Bar Goes Up When The Blue Goes Up?

(Correct Answer Below)

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Which Of The Following Statements Best Explains Why The Red Bar Goes Up When The Blue Goes Up?

Equivalent spending and taxing does not allow for debt reduction. Higher spending than taxing results in a deficit, which contributes to more debt. Higher taxing than spending results in a deficit, which contributes to more debt. Higher taxing and higher spending result in more debt.
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Higher spending than taxing results in a deficit, which contributes to more debt.

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