Questions: Which kind of budget would cause the largest increase in a country's national debt? A. One that increases taxes and decreases spending B. One that increases taxes and increases spending C. One that decreases taxes and increases spending D. One that decreases taxes and decreases spending

The answer is C. One that decreases taxes and increases spending.

This option would likely lead to a reduction in the national debt. Increasing taxes would generate more revenue for the government, while decreasing spending would reduce the outflow of funds. Together, these actions would help to balance the budget or even create a surplus, which could be used to pay down existing debt.

This option could have a neutral effect on the national debt, depending on the balance between the increased revenue from taxes and the increased government spending. If the increase in taxes is greater than the increase in spending, it could reduce the debt. Conversely, if spending increases more than tax revenue, it could increase the debt.

This option would cause the largest increase in a country's national debt. Decreasing taxes would reduce government revenue, while increasing spending would raise the amount of money the government needs to borrow. This combination would lead to a larger budget deficit, thereby increasing the national debt.

This option could potentially have a neutral or slightly negative effect on the national debt, depending on the extent of the decreases. If spending is decreased more than the reduction in tax revenue, it could help reduce the debt. However, if the decrease in taxes is greater than the decrease in spending, it could lead to a slight increase in the debt.