Although Biennial Budgets May Allow Greater Time for More Thorough

question 16

Multiple Choice

Although biennial budgets may allow greater time for more thorough analysis of government activities and could eliminate an enormous amount of "busy work," according to budget reformers, why do the federal government and most states continue to rely on annual budgets?

• A) Makes prompt responses to external conditions more difficult
• B) New information cannot be factored into program changes as quickly
• C) Both makes prompt responses to external conditions more difficult and new information cannot be factored into program changes as quickly

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Definitions:

Public Debt

The amount of federal securities outstanding, which represents what the federal government owes (the accumulation of federal deficits minus surpluses over the last two centuries).

GDP

Gross Domestic Product, which is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Foreigners

Individuals or entities from one country that are located in or interacting with another country.

Liability

An obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer of assets, provision of services, or other yielding of economic benefits in the future.