Over the past few decades in the United States, large federal budget deficits most often have been caused by:

Question

Quizplus · Accepted Answer

The most common cause of large federal budget deficits in the US has been a depressed economy. When the economy is in a downturn, tax revenues decline, and the government often spends more on unemployment benefits and other safety net programs. This combination can result in large budget deficits. The other options, such as decreased spending on welfare payments, excessive spending by state governments, or excessive tax increases, are less common causes of budget deficits on a federal level.

Over the Past Few Decades in the United States, Large