The Federal Government Started Running a Budget Surplus in 1998

question 167

Multiple Choice

The federal government started running a budget surplus in 1998.By 2002,the budget surplus had turned into a budget deficit.Why do you think the budget deficit returned in 2002?

• A) There were spending increases to reduce the impacts of the Great Recession.
• B) Entitlement programs were expanded in 2002,causing outlays to exceed revenues.
• C) There was increased military spending in response to the September 11,2001,terrorist attacks.
• D) There were large decreases in tax rates,which reduced total tax revenues.
• E) Politicians were spending the surplus too quickly on projects that would benefit their home districts.

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