Which of the following are likely reasons for the government to be running a deficit?
I.Military invasions
II.Budget cuts
III.Economic recession
IV.Tax cuts

Question

Quizplus · Accepted Answer

Military invasions require significant expenditures, economic recession decreases government revenue and increases social welfare spending, and tax cuts reduce the government's revenue, all of which contribute to a government deficit. Budget cuts may actually decrease government spending and lead to a surplus, contradicting the intended result of the question.

Which of the Following Are Likely Reasons for the Government