Which Statement(s) Is/are TRUE? I

question 275

Multiple Choice

Which statement(s) is/are TRUE? I. The first priority for economists who favor a functional finance approach to the federal budget is to determine whether the budget is in surplus or deficit.
II) Slowly growing and fully employed economies do not have important public debt or deficit issues.
III) The government's primary job, according to those who favor functional finance, is to provide the public goods and services citizens want.

• A) I and II only
• B) I only
• C) II and III only
• D) III only

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Definitions:

Insurance Proceeds

The money received from an insurance claim, compensating for losses or damages covered by an insurance policy.

Annuity Due

A type of annuity payment where payments are made at the beginning of each period instead of the end.

Growing Perpetuity

A series of cash flows that grow at a consistent rate indefinitely.

Growing Annuity

A series of periodic payments that grow at a constant rate and are received for a finite number of periods.