The budget deficits of the 1980s and early 1990s differ from others in the post-World War II era in that they were
A)a result of the Fed rather than a change in fiscal policy.
B)temporary rather than structural, and pose no threat to the economy.
C)not contracted to fight a war or end a recession.
D)contracted as part of a program to plan the economy.

Question

Quizplus · Accepted Answer

The budget deficits of the 1980s and early 1990s were not contracted to fight a war or end a recession, which differentiates them from other deficits in the post-World War II era. They were largely attributed to tax cuts and increased defense spending under President Reagan's administration.

The Budget Deficits of the 1980s and Early 1990s Differ