If Congress Were Required to Consent to Every Deviation of the Actual

question 115

Multiple Choice

If Congress were required to consent to every deviation of the actual budget from the initially approved budget, the federal budget would not work as an automatic economic stabilizer due to:

• A) the long outside lags.
• B) the long inside lags.
• C) the long fiscal year.
• D) the crowding out effect.

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Definitions:

Economic Principle

Fundamental theories or laws that underpin the operation of economies and inform decision-making.

Rational Decisions

Decision-making process that is based on making choices that result in the most optimal level of benefit or utility.

Scarcity

Is the fundamental economic problem of having seemingly unlimited human wants and needs in a world of limited resources.

Societies

Large groups of individuals who live together in an organized community with shared laws, traditions, and values.