Which of the following best explains why a budget deficit develops?
A. Economic recession causes an increase in the number of Americans without jobs
B. Taxes do not increase at the same rate as government expenditures do.
C. Taxes increase faster than government spending does
D. The government does not make proper use of a stimulus package
E. The government takes more than its fair share of the gross domestic product
Answer: B. Taxes do not increase at the same rate as government expenditures do.
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