Analysis of U.S. budget deficits in the United States between 1990 and 2000 indicates that which of the following is primarily responsible for the reduction in the budget deficit?

Question

Quizplus · Accepted Answer

The reduction in budget deficits between 1990 and 2000 was primarily due to a combination of decreased spending and increased tax revenues. While lower interest rates may have played a role in reducing the costs of servicing the national debt, it was not the primary driver of deficit reduction during this period. Increases in tax rates may have contributed to higher revenues, but they were not the only factor. Therefore, option B is the best choice as it accurately reflects the most important factors that contributed to the reduction of budget deficits during this time period.