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The Shift from Budget Deficits to Budget Surpluses in 1998

Question 53

Multiple Choice

The shift from budget deficits to budget surpluses in 1998 was due to several factors.Which of the following was NOT a factor?


A) A strengthened economy and low inflation rate reduced the rate of increase in entitlement programs
B) The private sector experienced significant economic growth
C) Defense spending on the Persian Gulf War
D) The booming stock market in the 1990s meant higher state and federal revenues from capital gains

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