Which of the Following Is an Argument Against Balancing the Federal

question 4

Multiple Choice

Which of the following is an argument against balancing the federal budget?

• A)The economy will self-adjust so deficit spending is not necessary.
• B)An increase in government spending and taxes by the same amount does not affect income.
• C)Doing so may prevent the government from pulling the economy out of recession.
• D)None of the choices are correct.

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Definitions:

Notes Receivable

Financial assets representing amounts due to be paid to a company by customers or other entities in the form of promissory notes.

Direct Method

A method of preparing the cash flow statement where actual cash flow information from the company's operations is used, as opposed to indirect method adjustments.

Operating Cash Receipts

Money received by a company from its operational activities, such as sales of goods or services.

Accumulated Depreciation

The total amount of depreciation expense recorded for an asset, reducing its book value over time.