Which of the following is true?
A)The budget approved by Congress cannot be modified throughout the fiscal year.
B)The budget submitted by the president cannot be changed by Congress.
C)In a recession, the actual budget is likely to reflect a larger deficit than the proposed budget.
D)The budget submitted by the president can be changed by Congress and the Federal Reserve.
E)Proposed taxes and spending programs will always be the same as actual taxes and spending programs.

Question

Quizplus · Accepted Answer

C is correct because during a recession, government revenues tend to decrease due to lower tax collections, and expenditures may increase due to higher demand for public services and welfare programs. This can lead to a larger deficit than initially proposed. Choices A, B, D, and E are incorrect because the budget approved by Congress can indeed be modified, the president's budget proposal is often changed by Congress, only Congress (not the Federal Reserve) has the power to change the budget, and proposed taxes and spending programs often differ from actual outcomes due to changes in economic conditions and policy decisions.

Which of the Following Is True