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

Question

Quizplus · Accepted Answer

During the 2008-09 recession, the government deficit increased due to the government spending more money on stimulus packages and unemployment benefits while also experiencing a decrease in tax revenue.

In the 2008-09 Recession, the Government Deficit