Which of the Following Statements About Government Deficit Spending Is

question 161

Multiple Choice

Which of the following statements about government deficit spending is most accurate?

• A) The federal government violates the law by running deficits because the U.S. Constitution requires the government to balance its budget each year.
• B) Although the government used to run big deficits, it has consistently run surpluses since the late 1980s.
• C) The government has used deficit spending to lower the national debt.
• D) One reason the government has a hard time reducing deficits is that there is a great deal of pressure on the government to expand its spending each year.

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Definitions:

Master Budget

A comprehensive financial planning document that consolidates all of a company's individual budgets relating to sales, cost of goods sold, operations, and capital expenditures into one overarching budget.

Sales Budget

A financial plan that estimates the expected sales revenue for a period, including units sold and revenue expected.

Cash Budget

A cash budget is a financial plan or forecast that outlines expected cash inflows and outflows over a specific period, helping businesses manage their cash flow.

Purchases Budget

A financial plan that estimates the amount of goods or inventory a business needs to buy over a certain period to meet its sales goals.