During the late 1980s and early 1990s, most of the budget deficits were accounted for by
A)the decline of foreign investment in the United States.
B)the downturn in the economy.
C)deliberate fiscal policy changes.
D)all of the above are correct.

Question

Quizplus · Accepted Answer

Most of the budget deficits during this time were due to deliberate fiscal policy changes, such as increased spending and tax cuts. While the downturn in the economy may have also contributed to the deficits, it was not the primary cause. Foreign investment may have played a role, but it was not significant enough to account for most of the deficits during this period.

During the Late 1980s and Early 1990s, Most of the Budget