In order to reduce its budget deficit, a government raises direct taxation. What is the most likely effect on the government’s capacity to meet its macroeconomic objectives? (The options show the likelihood of low unemployment, low inflation, economic growth.)
- Alow unemployment less likely, low inflation less likely, economic growth less likely
- Blow unemployment more likely, low inflation less likely, economic growth more likely
- Clow unemployment less likely, low inflation more likely, economic growth less likely
- Dlow unemployment less likely, low inflation more likely, economic growth more likely