Actual Federal Budgets Are Not an Accurate Measure of Discretionary

question 79

Multiple Choice

Actual federal budgets are not an accurate measure of discretionary fiscal policy because:

• A)it is difficult to measure government spending accurately.
• B)people cheat on their income taxes.
• C)budget deficits increase during expansions even without changes in fiscal policy.
• D)budget deficits increase during recessions even without changes in fiscal policy.
• E)earlier administrations may have contributed to current budget deficits.

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Definitions:

Self-fulfilling Logic

A belief or expectation that, purely as a result of being held, causes itself to become true.

Ethical Criteria

Standards or principles that guide moral conduct and decision-making in various contexts.

Appropriate Conduct

Behavior that is deemed suitable or fitting in a particular context or situation.

Moral Conduct

behavior that is considered to be in alignment with principles of right and wrong.