Each of the following changes would allow the measured budget deficit to provide a truer picture of fiscal policy except:
A) correcting for the effects of inflation.
B) offsetting changes in government liabilities with changes in government assets.
C) excluding some liabilities altogether.
D) correcting for the effects of the business cycle.

Question

Quizplus · Accepted Answer

Excluding some liabilities altogether would not provide a truer picture of fiscal policy, as it would ignore certain financial obligations, potentially misrepresenting the government's fiscal position. Correcting for inflation, offsetting changes in liabilities with assets, and adjusting for the business cycle all contribute to a more accurate reflection of fiscal policy by accounting for external factors and the government's comprehensive financial activities.

Each of the Following Changes Would Allow the Measured Budget