A Disadvantage of Having an Annually Balanced Budget Is That

question 91

Multiple Choice

A disadvantage of having an annually balanced budget is that government spending would have to:

• A)allow the national debt to burgeon with chronic deficits.
• B)decline during a recession to offset the increase in tax revenues.
• C)rise during a recession to match the increase in tax revenues.
• D)rise during an expansion to offset the decline in tax revenues.
• E)decline in a recession to match the decrease in tax revenues.

Evaluate the benefits of reducing collection and disbursement times.

Understand the operational costs associated with maintaining cash balances and executing transactions.

Determine the net benefits of implementing financial management tools and strategies.

Understand the concept of homeostasis and its role in motivation.

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Definitions:

Income

The financial gain received by an individual or business, typically expressed as a total earnings or profit.

Price

The amount of money required to purchase a good or service, or the value that consumers are willing to pay for it.

Apples

Edible fruits with a sweet taste and crisp texture, coming in many varieties and colors like red, green, and yellow.

Utility Function

A mathematical representation of a consumer's preference ordering over a set of goods or outcomes, showing the level of satisfaction or utility derived from each.