During a recession tax revenues go down and social welfare spending goes up, leading to budget deficits:

Group of answer choices

a) so both state and local governments AND the Federal government have to raise taxes and/or cut spending to balance their budgets;

b) so the Federal government has to raise taxes and/or cut spending to balance their budget but the state and local governments can borrow more;

c) so state and local governments have to raise taxes and/or cut spending to balance their budget but the Federal government can borrow more;

d) so neither state and local governments NOR the Federal government have to raise taxes and/or cut spending as they all can just borrow more by selling more bonds.