Which of the Following Statements About Government Deficit Spending Is

question 23

Multiple Choice

Which of the following statements about government deficit spending is most accurate?

• A)The federal government violates the law by running deficits because the Canadian Constitution requires the government to balance its budget each year.
• B)Although the government used to run big deficits,it has consistently run surpluses since the late 1980s.
• C)The government has used deficit spending to lower the national debt.
• D)One reason the government has a hard time reducing deficits is that there is a great deal of pressure on the government to expand its spending and transfer payments each year.

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Definitions:

Inventory

The raw materials, work-in-process products, and finished goods considered to be the portion of a business's assets that are ready or will be ready for sale.

Current Asset

Assets expected to be converted into cash, sold, or consumed within one year or the normal operating cycle, whichever is longer.

FOB Shipping Point

FOB Shipping Point is a delivery term that means the buyer takes ownership and responsibility for the goods once they leave the seller's premises.