Making Permanent Cuts in Existing Agencies Is Often Difficult Because

question 79

Multiple Choice

Making permanent cuts in existing agencies is often difficult because

• A) most agencies have a supportive constituency that will fight to reinstate any cuts that are made.
• B) the Constitution prevents cuts to federal agencies lasting longer than five years.
• C) every permanent cut to a federal agency must be reviewed by the Supreme Court before it can be put into effect.
• D) federal law requires that the government cut every agency equally.
• E) the vast majority of agencies have been given permanent "budgetary immunity" from the president that protects them from cuts.

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Definitions:

Investments Account

An account on the balance sheet that reports the cost of investments held by an entity, such as stocks, bonds, or real estate.

Balance Sheet

A financial statement that shows the assets, liabilities, and shareholders' equity of a company at a specific point in time, providing a snapshot of a company's financial condition.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

Common Stock

Certificates issued by a corporation to investors as proof of their ownership rights; an account representing the ownership rights of investors in a corporation; a class of stock issued by a corporation that bears no preference rights.