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Which of the Following Is NOT True Regarding Budgeting Rules

Question 47

Multiple Choice

Which of the following is NOT true regarding budgeting rules?


A) Some balanced budget rules have weak provisions for enforcement.
B) Tough budgeting rules do not prevent deficits when they are combined with limits on government borrowing.
C) Rules that simply require a budget to be balanced may be less effective than rules that require a budget to be balanced at the end of the fiscal year.
D) Some budgeting rules regulating long-term capital borrowing do not necessarily lead to less state indebtedness.

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