The emergence of deficits can be attributed to several factors. From the options provided, the main reasons typically include:
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War financing - Wars can result in significant government spending, often leading to budget deficits.
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Fiscal policy - Expansionary fiscal policies, such as increased government spending or tax cuts that exceed revenues, can lead to deficits.
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Recessions - Economic downturns often result in decreased government revenues (due to lower tax collections) and potentially increased spending on social safety nets, contributing to deficits.
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Inflationary periods - While inflation itself may not directly cause deficits, it can influence government spending and revenue in complex ways; however, it is generally not considered a primary reason compared to the others listed.
Monetary policy, while it can impact interest rates and economic conditions, is more about managing the economy rather than being a direct cause of deficits.
Therefore, the main reasons for deficits from the options given are: War financing, Fiscal policy, and Recessions. Inflationary periods can have some relevance but are less direct than the others.