An Annually Balanced Government Budget Is a Difficult Policy Goal

question 101

Multiple Choice

An annually balanced government budget is a difficult policy goal to achieve because

• A)a significant portion of the government's budget is beyond the short-term discretion of the federal government.
• B)government has little control over interest-rate charges on its debt during a fiscal year.
• C)tax revenues automatically rise during economic booms and fall during recessions.
• D)transfer payments rise during recessions and fall during economic booms.
• E)all of the above are reasons why a balanced budget is difficult to achieve.

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Definitions:

Decreased Appetite

A reduction in the desire to eat which can result from psychological, medical, or environmental factors.

High Level Insulin

An increased amount of insulin, a hormone produced by the pancreas to regulate blood sugar levels, which can indicate conditions like hyperinsulinemia.

Appetite

The natural desire or craving for food, which can be influenced by both physiological and psychological factors.

Glucose Stored

Glucose that is accumulated and conserved in the body, mainly in the liver and muscles, for future energy demands.