Permanent Funds Account for Resources That Are Donor Restricted to the Extent

question 63

True/False

Permanent funds account for resources that are donor restricted to the extent earnings but not principal may be used to support government programs.

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Definitions:

Levy

A tax imposed by a government on goods, services, or financial transactions.

Consumption

The use of goods and services by households, which represents the final phase in the economic chain of activities.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite to normal goods.

Income

Money received on a regular basis from work, property, business, or investments.