Which of the following factors did not contribute to the federal budget surpluses in the 1990s?
A)Higher taxes on the rich
B)More federal government spending discipline
C)Market globalization
D)Slower consumer spending
E)Rising business optimism based on technological innovation

Question

Quizplus · Accepted Answer

Slower consumer spending would actually contribute to federal budget deficits rather than surpluses. When consumers spend less, it leads to a decrease in economic growth and can result in lower tax revenues for the government. The other choices - higher taxes on the rich, more federal government spending discipline, market globalization, and rising business optimism based on technological innovation - are all factors that contributed to the federal budget surpluses in the 1990s.

Which of the Following Factors Did Not Contribute to the Federal