A possible explanation for the persistence of the U.S. federal budget deficits is that:

A. it is easier politically to increase government spending than to decrease taxes.

B. the economy naturally tends toward recessions.

C. it is easier politically to decrease government spending than to decrease taxes.

D. it is easier politically to increase government spending than to increase taxes.

• The correct answer is D. it is easier politically to increase government spending than to increase taxes.

The government budget balance is the result of the subtraction of government spending from government revenue (taxes and other fees). In other words, the government budget balance is taxes minus government spending. There is a budget surplus when a government collects more revenue than it spends. On the other hand, there is a budget deficit when a government spends more than it collects from taxes and other fees. In the last years, the United States has been reported large budget deficits. One of the ways to reduce this budget deficit is by increasing taxation and reducing government spending. However, these two actions can cause political damages. Therefore, they are not the most popular policies implemented by governments. In conclusion, the correct answer is option D. In contrast, option A. is incorrect since increasing spending and decreasing taxes would intensify the deficit. Option B . is also incorrect because the budget deficit in the U.S. is not associated with recessions. Option C. is also incorrect because decreasing taxes does not help to reduce the budget deficit.