What was the impact of the 2018 Tax Cuts (which occurred during an economic expansion) on the federal budget deficit?

The tax cuts of 2018 did not affect the budget deficit.

The tax cuts of 2018 led to a decrease in the federal budget deficit due to strong economic growth.

The tax cuts of 2018 contributed to increasing the budget deficit as tax revenues declined.

Federal budget deficits financed are financed with Treasury debt that is sold to investors. Which foreign investors hold the most U.S. debt?

Great Britain and China

Canada and France

Japan and China

Great Britain and Canada

What has been the trend in U.S. federal debt outstanding since the turn of the century?

After nearly doubling from 2000 to 2009, the amount of federal debt declined by almost 50% between 2010 and 2019 before increasing in 2020 due to covid-19.

Federal debt declined after the turn of the century before increasing significantly between 2010 and 2015. The debt level declined between 2016 and 2019 before increasing in 2020 due to covid-19.

After nearly doubling from 2000 to 2009, the amount of federal debt nearly doubled from 2010 to 1015; federal debt declined significantly between 2016 and 2019 before increasing in 2020 due to covid-19.

From 2000 to 2009, the federal debt approximately doubled. In the past decade, the federal debt level nearly doubled again. Covid-19 will push the federal debt to a record amount.

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The correct answer is The tax cuts of 2018 contributed to increasing the budget deficit as tax revenues declined Explanation The tax cuts of 2018 cont... View the full answer