A recession tends to cause the federal budget deficit to because tax revenues and government spending on transfer payments .

increase, fall, rise

Explanation:

A recession brings about a reduction in the activity in an economy as there is a reduction in the goods that are demanded. When there's recession, the budget deficit tends to worsen as government spends more. This is due to the fact that there's a reduction in the taxes as lesser goods are demanded and there's an increase in unemployment. Also, the government's spending on transfer payment will also increase.

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