Which of the following correctly describes the trend in the federal budget during the 1980s?
A) Federal spending declined relative to GDP, while federal revenues rose relative to GDP.
B) Federal spending rose relative to GDP, while federal revenues declined relative to GDP.
C) Balanced budgets were passed through cooperation between the president and Congress.
D) The dollar depreciated, thereby lowering the budget deficit.
E) The budget deficit decreased and then disappeared, turning into a surplus in the 1980s.

Question

Quizplus · Accepted Answer

During the 1980s, federal spending rose relative to GDP, while federal revenues declined relative to GDP. This resulted in a large increase in the federal budget deficit.

Which of the Following Correctly Describes the Trend in the Federal