Question

What effect have both the Reagan and Bush plan of lowering taxes and the Obama economic stimulus plan of greater spending had on the federal budget?

a. They both increased the public debt.
b. They both reduced the debt.
c. They both balanced the budget.
d. They both reduced the deficit.

Answer 1

The answer is a. They both increased the public debt.

Answer 2

The correct answer is letter A: They both increased the public debt.

Both plans brought to the United States a great amount of government spending.

Reagan and Bush's plan supported local businesses, and therefore they had to increase public spending.

Obama's plan increased public spending by allocating the spending on welfare.

Both huge spendings caused an increase in public debt.