Which of the Following Is NOT True Regarding Budgeting Rules

question 38

Multiple Choice

Which of the following is NOT true regarding budgeting rules?

• A)Some balanced budget rules have weak provisions for enforcement.
• B)Tough budgeting rules do not prevent deficits when they are combined with limits on government borrowing.
• C)Rules that simply require a budget to be balanced may be less effective than rules that require a budget to be balanced at the end of the fiscal year.
• D)Some budgeting rules regulating long-term capital borrowing do not necessarily lead to less state indebtedness.

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