Analysis of U.S.budget deficits in the United States between 1990 and 2000 indicates that which of the following is primarily responsible for the reduction in the budget deficit?
A)decrease in spending
B)increase in tax revenues
C)decrease in spending and increase in tax revenues
D)lower interest rates
E) increases in tax rates

Question

Quizplus · Accepted Answer

The reduction in the budget deficit between 1990 and 2000 was primarily due to a combination of decreased spending and increased tax revenues. Lower interest rates and increased tax rates may have contributed to some extent, but the main factor was the balanced approach of reducing spending and increasing revenue.