Question

Which of the following contributed to the increase in the national debt during the 1990s?

A.A decrease in discretionary spending.
B.A period of inflation.
C.The bailout of failed savings and loan associations.
D.A decrease in military expenditures.

Answer 1

The bailout of failed savings and loan associations was a significant factor that contributed to the increase in the national debt during the 1990s. Option C is correct.

Step-by-step explanation:

The question asks which factor contributed to the increase in the national debt during the 1990s. Based on historical economic data, we know that several factors can affect national debt, such as military spending and tax policies. However, the correct answer in this context is C. The bailout of failed savings and loan associations contributed to the increase in national debt during the 1990s. This was a significant event where the federal government had to step in to address the financial crisis, adding to the national debt.