debbievines4679 debbievines4679
  • 26-11-2019
  • Business
contestada

Federal budget deficits generally grow during recessions because

Respuesta :

profantoniofonte
profantoniofonte profantoniofonte
  • 26-11-2019

Answer:

Because the social expenditure increases

Explanation:

When the economy is in recession, the government revenue brought by taxes decreases. But the demand for welfare, social expenditure increases dramatically (education, health, etc.). Since a Recession is a sign of a stagnant economy.

If the Federal Budget has already been facing a deficit then, generally, this situation will increase its debts.

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