Asked by Charles Myles on May 20, 2024
Verified
Statement I: By law,the federal government must balance its budget every year.
Statement II: Between 1970 and 1997 we ran Federal budget deficits every year.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Federal Budget
The government budget for a fiscal year that outlines the projected spending and revenue of the federal government.
Budget Deficits
The condition when a government, organization, or individual spends more money than it receives over a certain period, requiring borrowing to bridge the gap.
- Familiarize oneself with the concept and outcomes of budget parity, fiscal shortfalls, and surplus situations in the realm of public finance policy.
- Recognize the structure and consequences of the national (federal) debt and public debt.
Verified Answer
MA
Monic amoreMay 26, 2024
Final Answer :
B
Explanation :
Statement II is true based on historical data, but Statement I is false. There is no law that requires the federal government to balance its budget every year. However, there are laws like the Budget Control Act of 2011 that aim to reduce the deficit over time.
Learning Objectives
- Familiarize oneself with the concept and outcomes of budget parity, fiscal shortfalls, and surplus situations in the realm of public finance policy.
- Recognize the structure and consequences of the national (federal) debt and public debt.
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