The Federal Government Started Running a Budget Surplus in 1998

Multiple Choice

The federal government started running a budget surplus in 1998.By 2002,the budget surplus had turned into a budget deficit.Why do you think the budget deficit returned in 2002?

A) There were spending increases to reduce the impacts of the Great Recession.
B) Entitlement programs were expanded in 2002,causing outlays to exceed revenues.
C) There was increased military spending in response to the September 11,2001,terrorist attacks.
D) There were large decreases in tax rates,which reduced total tax revenues.
E) Politicians were spending the surplus too quickly on projects that would benefit their home districts.