Which of the following is most likely to reduce a federal budget surplus?
A)A booming economy with rising inflation rates.
B)A recession.
C)Higher inflation and higher unemployment rates.
D)Lower inflation and lower unemployment rates.

Question

Quizplus · Accepted Answer

A recession typically leads to decreased economic activity and lower tax revenues, which can reduce a federal budget surplus.

Which of the Following Is Most Likely to Reduce a Federal