Ask Question
23 August, 12:30

Federal budget deficits generally grow during recessions because

+2
Answers (1)
  1. 23 August, 12:51
    0
    Because the social expenditure increases

    Explanation:

    When the economy is in recession, the government revenue brought by taxes decreases. But the demand for welfare, social expenditure increases dramatically (education, health, etc.). Since a Recession is a sign of a stagnant economy.

    If the Federal Budget has already been facing a deficit then, generally, this situation will increase its debts.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Federal budget deficits generally grow during recessions because ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers