The Budget Deficit Increased During the Great Recession of 2007-2009

Multiple Choice

The budget deficit increased during the Great Recession of 2007-2009 and the financial crisis of 2008 because of _____

A) an increase in tax rates for high-income households.
B) a sudden increase in terrorist attacks and anthrax scares.
C) low interest rates that crowded out private investment.
D) discretionary tax cuts and greater outlays on unemployment benefits.
E) greater outlays on national defense spending.