Suppose there was a debate regarding intelligence budgets and the Democrat was arguing for a budget increase from $40 billion to $41 billion and the Republican was arguing for the budget to increase to $45 billion. Further, suppose intelligence salaries and procurement of the same spy systems are project to rise 5%. The Republican accuses the Democrat of proposing a cut to intelligence gathering which, the Democrat insists his plan increases that spending. What is going on here?
A. The Republican is cutting only if you use baseline budgeting.
B. Both are proposing cuts. They are both lying, regardless of budgeting technique.
C. The Democrat is cutting only if you use current services budgeting.
D. Both are proposing increases. The Republican is lying, regardless of budgeting technique.
Answer: C
Economics
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