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:

Schizophrenic Disorder

A chronic mental health disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

Seligman's Preparedness

The theory suggesting that organisms are evolutionarily predisposed to learn certain types of associations more easily than others, contributing to phobias and fears.

Elevator Phobia

An intense fear or anxiety triggered by the thought of riding in an elevator, often leading to avoidance of elevator use.

Spider Phobia

An intense, irrational fear of spiders, officially known as arachnophobia, which can cause significant distress and avoidance behaviors in individuals.