Which of the following has been advanced as a legitimate reason for federal budget deficits?
A)Both c and d are legitimate reasons for government budget deficits.
B)All of the following.
C)Deficits help reduce the size and duration of recessions through the automatic stabilizers.
D)Deficits have been used to finance capital projects.
E)If the government had to fund all of its programs with tax revenues,the programs wouldn't get funded.

Question

Quizplus · Accepted Answer

Both options C and D are legitimate reasons for federal budget deficits. Deficits can be used to finance capital projects, such as infrastructure improvements or national defense initiatives, and they can also help reduce the severity and duration of economic recessions by allowing the government to automatically increase spending during times of economic downturn. Option E is also a valid reason for budget deficits, as it can be difficult for the government to fund all of its programs solely through tax revenues, especially during times of economic hardship. However, option B is incorrect as not all reasons provided are legitimate reasons for federal budget deficits.

Which of the Following Has Been Advanced as a Legitimate