Which of the Following Is True

question 100

Multiple Choice

Which of the following is true?

• A)Though not required by law, the government tends to run a balanced budget year after year.
• B)If there is a budget deficit, the government must borrow to pay for the excess spending.
• C)If there is a budget deficit, the government must ask the Fed to print money to finance excess spending.
• D)By law the federal budget must balance.
• E)If there is a budget deficit, the government must raise taxes.

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Definitions:

High-low Method

A way of attempting to understand cost behavior by analyzing the difference in cost between the highest and lowest volume levels.

High-low Method

A technique used in managerial accounting to estimate variable and fixed cost components of a cost by analyzing the highest and lowest activity levels.

Electrical Cost

Electrical cost refers to the expenses incurred from the use of electricity, often a significant component of utility costs for homes and businesses.

Machine-hour

A measure of the amount of time a machine is run, often used as a basis for allocating manufacturing overhead to products.