Which of the following statements about state and federal budgets is the MOST accurate?
A)Every state government and the federal government are allowed to run budget deficits.
B)Every state government and the federal government must balance their budgets each year.
C)The federal government has to balance its budget, but the vast majority of state governments are allowed to run budget deficits.
D)The vast majority of state governments must balance their budgets, but the federal government is allowed to run budget deficits.

Question

Quizplus · Accepted Answer

Most state governments are required by law to balance their budgets each year, while the federal government is allowed to run budget deficits. However, there have been instances where even some state governments have run deficits, but they are not as common as at the federal level. Therefore, option D is the most accurate statement.

Which of the Following Statements About State and Federal Budgets