When a government's Unassigned fund balance/Total operating revenues ratio is high
A) It is a sign of fiscal strength.
B) It indicates the government is spending too little.
C) It indicates the government is taxing too much.
D) Any of the above may be indicated.

Question

Quizplus · Accepted Answer

A high Unassigned fund balance/Total operating revenues ratio can indicate fiscal strength, suggest that the government is spending too little, or imply that it is taxing too much. The interpretation depends on the broader fiscal context and policies.

When a Government's Unassigned Fund Balance/Total Operating Revenues Ratio Is