Agency X Had an Appropriation of $10 Million in 2013

question 4

Multiple Choice

Agency X had an appropriation of $10 million in 2013 and of $11.5 million in 2014 an increase of $1.5 million or 15%) . According to the incrementalist view, what is the 2014 budget base for the agency?

• A) $10 million
• B) $13 million $11.5 million plus $1.5 million
• C) $13.225 million $11.5 million plus 15%
• D) $11.5 million

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Definitions:

Keynes

John Maynard Keynes was a British economist whose ideas, known as Keynesian economics, had a major impact on modern economic and political theory and on fiscal policies of governments.

Demand

The desire and ability of consumers to purchase goods or services at a given price.

Unemployment

The state of being without a job despite actively looking for work, used as an indicator of the health of the economy.

Saving Equals Investment

A macroeconomic identity where all saved money within the economy is assumed to equal all invested money, indicating a balance in the financial system.