Why Were the U

Multiple Choice

Why were the U.S.government budget deficits of the 1980s and early 1990s so unusual from a historical point of view?

A) It was the first time the U.S. government had ever run deficits.
B) In the past, deficits were usually that large only in wartime.
C) It was the first time that deficits were accompanied by very high rates of inflation.
D) It was the first time that deficits diverted funds from other productive uses, such as investment in modern equipment.