Asked by jasmine badayos on Apr 30, 2024
Verified
Statement 1: In 2002 and 2003,state after state slashed services and raised taxes.
Statement 2: Through the 1970s,the 1980s,and the 1990s,state governments ran substantial budget deficits.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Budget Deficits
Occurs when a government's expenditures surpass its revenues within a given fiscal period, necessitating borrowing or spending cuts.
- Examine the repercussions on the economy and society as a result of fiscal policies and public expenditures.
Verified Answer
LG
Lillian GushuraMay 03, 2024
Final Answer :
A
Explanation :
Statement 1 is true as many states faced budget crises in the early 2000s, leading to service cuts and tax increases. Statement 2 is false because, while there were periods of deficits, it's not accurate to say state governments ran substantial deficits throughout all three decades.
Learning Objectives
- Examine the repercussions on the economy and society as a result of fiscal policies and public expenditures.