Prior to the Great Depression, deficits built during wars were _____
A) continuing, because military spending increased after a war, but tax revenue did not.
B) continuing, because military spending dropped after a war, but tax revenue did not.
C) self-correcting, because military spending dropped after a war, but tax revenue did not.
D) self-correcting, because military spending increased after a war, but tax revenue did not.
E) nonexistent, either during war or peacetime.

Question

Quizplus · Accepted Answer

Deficits built during wars were typically self-correcting prior to the Great Depression because military spending would decrease after the war concluded, while tax revenue remained steady or increased, helping to balance the budget over time.

Prior to the Great Depression, Deficits Built During Wars Were