The annual budget deficit grew from $80 billion in 1981 to $290 billion in 1992.Which of the following was NOT a factor in increasing the deficit?

Question

Quizplus · Accepted Answer

Federal spending on programs such as crime, transportation, and education did contribute to the deficit, so it was not exempted from being a factor. Thus, option D was NOT a factor in increasing the deficit, making it the correct choice. The other options - A) large tax cuts in 1981-1983, B) Increased levels of defense spending in the 1980s, and C) Federally funded bailout of savings and loan institutions - were factors that contributed to the deficit.

The Annual Budget Deficit Grew from $80 Billion in 1981