Cyclically Adjusted Budgets Are Useful Because They

question 32

Multiple Choice

Cyclically adjusted budgets are useful because they:

• A) systematically account for changes in government assets and liabilities.
• B) reflect policy changes, but not current economic conditions.
• C) account for tax burdens on different generations of taxpayers.
• D) correctly account for the impact of inflation on government indebtedness.

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Definitions:

M3

A measure of the total amount of money in circulation within an economy, including cash, deposits, and short-term securities.

John Maynard Keynes

An economist from Britain whose work reshaped both macroeconomic theory and the economic policymaking of governments.

Motives

The underlying reasons or goals that drive individuals or entities to act in a certain way, influencing economic decisions and behaviors.

Transactions Demand

Transactions demand refers to the amount of money or liquidity that is needed by an economy to facilitate day-to-day transactions.