Federal budget deficitsA) help stabilize the economy during recessions and depressions.B) depress interest rates.C) rarely occurred prior to the Reagan Administration.D) stimulate investment spending by businesses.E) are always undesirable.

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Kathryn Dominique Pacheco · Accepted Answer

Final Answer : A, Explanation :  During economic downturns, government spending can help boost economic activity and mitigate the impact of the recession. This typically involves deficit spending, which increases the budget deficit. Therefore, budget deficits can help stabilize the economy during recessions and depressions.

Federal budget deficits

A) help stabilize the economy during recessions and depressions.
B) depress interest rates.
C) rarely occurred prior to the Reagan Administration.
D) stimulate investment spending by businesses.
E) are always undesirable.

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