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14 July, 05:42

Which of the following situations could cause a budget deficit for the federal government?

A) The federal government issues more treasury bonds than treasury notes.

B) Government spending decreases.

C) There is a recession.

D) The federal government raises taxes.

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Answers (1)
  1. 14 July, 06:10
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    The answer is letter C. There is a recession. It is a temporary economic decline when trade and business activities are lessened which leads to the GDP of the country to reduce in numbers. If the decline would last for at least 6 months, this will cause a major impact on the real GDP,
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Home » Business » Which of the following situations could cause a budget deficit for the federal government? A) The federal government issues more treasury bonds than treasury notes. B) Government spending decreases. C) There is a recession.
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