All of the following are possible explanations for the increase in U.S. government budget deficits as a percentage of GDP since the early 2001 EXCEPT
A)increases in tax revenues.
B)increases in payments for entitlements.
C)increases in government spending.
D)decreases in tax rates.

Question

Quizplus · Accepted Answer

Increases in tax revenues would actually help to decrease the budget deficit, not increase it. Therefore, it cannot be a possible explanation for the increase in U.S. government budget deficits as a percentage of GDP.

All of the Following Are Possible Explanations for the Increase