The Gramm-Rudman-Hollings Act of 1985 created a
A)Deficit ceiling.
B)Debt ceiling.
C)Mandated balanced budget by 2005.
D)Prohibition against external financing of the debt.

Question

Quizplus · Accepted Answer

The Gramm-Rudman-Hollings Act of 1985 created a deficit ceiling, which set targets for reducing the federal budget deficit over a period of time. The act required automatic spending cuts if Congress failed to meet these targets, in order to encourage fiscal responsibility and reduce the deficit. While the act aimed to balance the budget by 1991, this goal was not achieved, and subsequent legislation amended the act's provisions. Therefore, options B, C, and D are incorrect.

The Gramm-Rudman-Hollings Act of 1985 Created a