Federal deficits amounted to 3.5 percent of the U.S.GDP by 2003 because of:
A)the global financial crisis of 2002 that increased the rate of unemployment.
B)an increase in the cost of fighting the war against terrorism.
C)an improving stock market that decreased interest payment burdens for the government.
D)a decrease in military and defense spending due to the end of the war in Iraq.
E)an increase in welfare spending and Medicare expenses.

Question

Quizplus · Accepted Answer

The federal deficits increased due to the costs associated with military operations and efforts related to the war on terrorism, which were significant during this period.

Federal Deficits Amounted to 3