Suppose governmental expenses are rising rapidly. Which strategy could the federal government use to solve this situation? (1 point)

Question

1. Make cuts to defense and education spending, and then increase tax rates.
2. Increase payouts for entitlements and decrease income and payroll taxes. Increase payouts for entitlements and decrease income and payroll taxes.
3. Increase corporate and individual income tax rates to raise revenue.
4. Delay payments for the interest on the national debt and increase tax rates for corporate income.

Answer 1

3. Increase corporate and individual income tax rates to raise revenue.