Asked by Faustine Hudson on May 03, 2024
Verified
Which of the following correctly describes the trend in the federal budget during the 1980s?
A) Federal spending declined relative to GDP,while federal revenues rose relative to GDP.
B) Federal spending rose relative to GDP,while federal revenues declined relative to GDP.
C) Balanced budgets were passed through cooperation between the President and Congress.
D) The dollar depreciated,thereby lowering the deficit.
E) The budget deficit decreased and then disappeared,turning into a surplus in the 1980s.
Federal Spending
The expenditure of funds by a government to support its programs and policies.
Federal Budget
The government's estimate of revenue and expenditures for a forthcoming fiscal year, outlining how federal funds are allocated among different programs and services.
Federal Revenues
Income received by the federal government from taxes, fees, and other sources.
- Acknowledge the historical progressions and policy modifications in the realm of U.S. budget deficits and national debt.
- Grasp the influence of economic policies on the budget imbalance and the country's total debt.
Verified Answer
LM
Leonardo MartínezMay 06, 2024
Final Answer :
B
Explanation :
The trend in the federal budget during the 1980s was that federal spending rose relative to GDP, while federal revenues declined relative to GDP. This was due to a combination of factors, including increased defense spending and tax cuts. The budget deficit also increased during this time period.
Learning Objectives
- Acknowledge the historical progressions and policy modifications in the realm of U.S. budget deficits and national debt.
- Grasp the influence of economic policies on the budget imbalance and the country's total debt.
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