Spending by State and Local Governments Is Similar to Spending

question 55

Multiple Choice

Spending by state and local governments is similar to spending by the federal government in that both

• A) help stabilize the aggregate economy.
• B) have deficits that rise during recessions.
• C) spend most of their budgets on education.
• D) None of the above answers are correct.

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Definitions:

Equivalent Value

The amount that represents the same value when compared under different conditions or assumptions.

Due Today

The amount of money that must be paid or is payable today.

Interest Free

Describes a loan or credit arrangement that does not require the borrower to pay interest on the borrowed amount.

Short Term Debt

Refers to any financial obligation that is due for repayment within one year.