One Explanation for Persistent Federal Budget Deficits Is That Officials

question 66

Multiple Choice

One explanation for persistent federal budget deficits is that officials are not required to

• A)honor the Constitution
• B)balance the budget
• C)raise taxes
• D)run for reelection
• E)None of the answers is correct

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Definitions:

Note Payable

A written promise to pay a specific amount of money, usually with interest, by a certain date.

Promissory Note

A written promise to pay a specified amount of money on demand or at a definite time.

Current Liability

A company's debts or obligations that are due within one year or within the normal operating cycle, whichever is longer.

Operating Cycle

The duration it takes for a company to buy inventory, sell products, and collect cash from sales, showing the efficiency of its operations.