One difference between the federal government budget and state and local budgets is that
a. deficits in state and local governments average zero over longer periods of time.
b. cyclical deficits are zero for state and local governments.
c. state and local governments typically run surpluses.
d. both a and b.
e. none of the above.
C
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Which of the following markets are closest to perfectly competitive
a. The market for smart phones b. The market for generic pharmaceuticals c. The market for sport shoes d. The market for fast food
The consumption function is drawn on a graph with disposable income on the horizontal axis without including investment. Assume investment is autonomous and is added to the consumption function. The effect is:
a. an upward adjustment in the vertical intercept b. no change in the adjustment in the vertical intercept. c. an increase in the slope of the consumption schedule. d. a decrease in the slope of the planned expenditure schedule.