Which of the Following Most Accurately Describes the Consequences of Federal

question 67

Multiple Choice

Which of the following most accurately describes the consequences of federal programs for states during the first Bush administration?

• A) Increased federal grant programs made state and local governments more dependent than ever on federal funding
• B) Increased state aid to the federal government forced states to cut their budgets and raise taxes
• C) Unfunded mandates and cuts in federal grants forced states to cut their budgets and raise taxes
• D) Congressional action reduced unfunded mandates and left state and local governments freer to manage their own budgets

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Definitions:

Discount Rate

A discount rate employed to ascertain the present worth of future cash flows within discounted cash flow analysis.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to analyze the profitability of an investment or project.

Operating Assets

Assets used in the day-to-day operations of a business, such as machinery, buildings, and equipment, that contribute to revenue generation.

Operating Costs

The expenses associated with the operation of a business, excluding costs associated with production.