Statement I: Maintaining a high rate of economic growth tends to reduce the federal budget deficit.
Statement II: From 1993 to 1997 the budget deficits fell every year.

Question

Quizplus · Accepted Answer

Statement I is true because with high economic growth there will be higher tax revenues and lower government spending on things like unemployment benefits. Therefore, the budget deficit will decrease. 
Statement II is true because during the years 1993-1997, the United States experienced a period of economic growth, which led to higher tax revenues and lower government expenditure, resulting in a decrease in the federal budget deficit.

Statement I: Maintaining a High Rate of Economic Growth Tends