In the 2008-09 recession, the government deficit
A)stayed roughly constant.
B)decreased.
C)would have increased if the government had intervened.
D)increased.
E)was reduced by the Bank of Canada.

Question

Quizplus · Accepted Answer

During the 2008-09 recession, the government deficit increased due to a decrease in tax revenues and an increase in government spending on stimulus measures and social safety net programs.

In the 2008-09 Recession, the Government Deficit