The Persistence of Budget Deficits During the Last Several Decades

question 39

Multiple Choice

The persistence of budget deficits during the last several decades is not surprising because politicians will find

• A) budget surpluses more attractive than budget deficits.
• B) tax increases more attractive than increases in government expenditures.
• C) budget deficits more attractive than budget surpluses.
• D) reductions in government expenditures more attractive than tax reductions.

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Definitions:

Time Series

A sequence of data points recorded or collected at successive time intervals, often analyzed to identify patterns over time.

Quantitative

Pertaining to methods or data that is numerical and can be measured and analyzed statistically for facts and figures.

Econometric Models

Econometric Models are statistical models used in economics to test hypotheses or forecast future trends by using data and mathematical theories.

Forecasting Method Categories

Different approaches or techniques used to predict future aspects of business operations, such as sales, demand, and inventory requirements.