Which of the Following Statements About Government Deficit Spending Is

question 73

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)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.
• C)Although the government used to run big deficits,it has consistently run surpluses since the late 1980s.
• D)The government has used deficit spending to lower the national debt.

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Definitions:

Journal Entry

A record in accounting that represents a transaction and shows the accounts affected and the amounts.

Sale

A transaction between two parties where the buyer receives goods, services, or assets in exchange for money or other forms of compensation.

Issuing Bonds

The process of a borrower offering bonds to investors as a form of debt securities to raise capital.