(04.05 MC) Bar graph entitled 2010 Budget Projected Deficits and Debt Increases. X axis spans years 2007 through 2015. Y axis labeled Bill Farcaster 2009 Creative Commons Attribution-Share Alike 3.0 Unported Which of the following statements best explains why the red bar goes up when the blue goes up? (4 points) Question 16 options: 1) Equivalent spending and taxing does not allow for debt reduction. 2) Higher spending than taxing results in a deficit, which contributes to more debt. 3) Higher taxing than spending results in a deficit, which contributes to more debt. 4) Higher taxing and higher spending result in more debt