During an economic expansion,
A) higher income tax revenues tend to automatically increase a budget deficit or reduce a budget surplus.
B) higher income tax revenues tend to automatically increase a budget surplus or reduce a budget deficit.
C) lower income tax revenues tend to automatically increase a budget deficit or reduce a budget surplus.
D) lower income tax revenues tend to automatically increase a budget surplus or reduce a budget deficit.
Answer: B) higher income tax revenues tend to automatically increase a budget surplus or reduce a budget deficit.
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