Government deficits tend to increase during A. periods of increased financial uncertainty. B. recessions and booms. C. periods of below or aboveaverage growth. D. periods of war and recession.

Respuesta :

Government deficits tend to increase during periods of war and recessions. The answer to this question is option D.

Government deficit is said to take place when a government's expenditure exceeds the revenue that it gets from taxes and other revenue generators.

During periods or recession in an economy, the revenue that is being generated in the nation would fall while expenditures would go up. This would ultimately lead to a deficit.

Also during the period of war, there are serious economic implications because of the decline in the economy and the rise in debt.

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