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9 May, 06:47

Federal budget deficits generally grow during recessions because

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  1. 9 May, 10:32
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    Because the social expenditure increases

    Explanation:

    When the economy is in recession, the government revenue brought by taxes decreases. But the demand for welfare, social expenditure increases dramatically (education, health, etc.). Since a Recession is a sign of a stagnant economy.

    If the Federal Budget has already been facing a deficit then, generally, this situation will increase its debts.
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