Some economists argue that federal budget deficits are overstated. Which of the following is not a factor in this overstatement?

Question

Quizplus · Accepted Answer

Social Security surplus is a factor that helps to reduce the federal budget deficit. Therefore, it cannot contribute to an overstatement of the deficit. Inflation, business cycles, and state and local government net balances could all be factors in overstating the federal budget deficit.

Some Economists Argue That Federal Budget Deficits Are Overstated