Which of the following is generally agreed to be an appropriate cause for a federal budget deficit?

Question

Quizplus · Accepted Answer

A temporary unexpected surge in spending due to a national emergency, such as a natural disaster or a war, is generally considered an appropriate cause for a federal budget deficit. These events are typically unforeseeable and require immediate action, which can result in increased spending and a temporary deficit. However, long-term subsidies for farmers, permanent increases in student tuition assistance, and creating permanent tax cuts for all income brackets are examples of spending that may not be sustainable or necessary, and can lead to long-term deficits. Increase in social entitlement programs for the poor can be debated, but generally not considered as an appropriate cause for a federal budget deficit as it can lead to a dependency on the government and a long-term deficit.

Which of the Following Is Generally Agreed to Be an Appropriate