Question

How did the federal budget behave in the first decade of the 2000s:

A. It experienced significant surpluses
B. It remained relatively stable with minimal changes
C. It faced consistent deficits
D. It underwent frequent revisions and adjustments

Answer 1

The federal budget in the first decade of the 2000s experienced consistent deficits, with especially deep deficits during the 2007-2009 recession.

Step-by-step explanation:

The behavior of the federal budget in the first decade of the 2000s can be characterized by consistent deficits. After a brief period of surplus in the late 1990s, the federal budget returned to a deficit in 2002 and faced particularly deep deficits during the 2007-2009 recession.

Economic conditions, federal spending, and tax policies all contributed to the fluctuations in the budget balance during this period.