Which of the Following Statements Is True

question 115

Multiple Choice

Which of the following statements is true?

• A)Federal budget deficits became progressively smaller during the 1990s and turned into a surplus by 1998.
• B)Federal spending declined relative to GDP,while federal revenues rose relative to GDP during the 1980s.
• C)Functional finance says that policy makers should be concerned less with the economy's potential output and more with balancing the budget annually.
• D)A disadvantage of functional finance is that it increases the level of unemployment during recessions.
• E)A disadvantage of annual financed budget is that it dampens swings in the business cycle without increasing the national debt.

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Definitions:

Contrived

Something artificially created rather than arising naturally or spontaneously.

Advance

Progress or development towards a more complete or improved state; also refers to the act of moving forward.

Expected Standard Of Care

The level of care and service that is anticipated or accepted as appropriate based on professional norms or benchmarks.

Affirmative Duty

A legal obligation to act proactively in certain situations to prevent harm.