While Expanded Federal Programs Are Often Popular for Americans, This

question 60

Multiple Choice

While expanded federal programs are often popular for Americans, this much larger bureaucracy suffers during a downturn in economic growth, such as was experienced in the 1970s. Why does an economic downturn create such challenges?

• A) There are fewer citizens for the bureaucracy to serve.
• B) Economic downturns often create federal budget deficits that make it very difficult to continue supporting a large bureaucracy.
• C) State governments begin to take away the federal government's role in providing social benefits.
• D) Downturns in the economy always create international tensions that require a stronger military presence, which in turn drains off available resources.
• E) As the U.S. Constitution requires a balanced budget, the federal government must eliminate agencies when income decreases.

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Definitions:

Limited Partnership

A business structure where one or more partners have limited liabilities, and at least one partner has unlimited liability.

Long-term Businesses

Companies or enterprises engaged in operations with the aim or expectation of continuing for many years into the future.

LLLP

A limited liability limited partnership, a type of partnership where some partners have limited liability (similar to limited partners in an LP) while also having the ability to participate in management.

General Partner

A general partner is an owner of a partnership who has unlimited liability and is typically involved in the day-to-day management of the business.