Which of following statements is true?
A) Except for few periods, Canadian government budget has always been in deficit.
B) Government budget is usually in deficit during expansion and in surplus during recession.
C) Canadian government budget realized large deficit during World Wars I and II, Great Depression, and between 1975 and 1996, and 2008.
D) A and C are both true.

Question

Quizplus · Accepted Answer

The Canadian government budget has been in deficit for most of its history, with the exception of a few periods. The government budget is typically in deficit during periods of economic expansion, when the government spends more than it takes in in taxes. During periods of recession, the government budget is typically in surplus, as the government takes in more in taxes than it spends. The Canadian government budget realized large deficits during World Wars I and II, the Great Depression, and between 1975 and 1996, and 2008.

Which of Following Statements Is True