**Topic: Understanding the Federal Budget Process in the U.S.**The federal budget process in the United States is a significant facet of government operations. Here are some key points to understand about this process:1. **Detailed Budgeting Dynamics**: - The idea that detailed budgeting allows the party in power to reward supporters is a misconception. Budgeting principles are guided by established protocols and are subject to thorough scrutiny.2. **Congressional Budget Approval**: - One of the considerations is whether **Congress approves a budget that separates the capital budget and the operating budget.** In practice, however, the U.S. federal budget process does not distinctly separate these components into two separate budgets. The focus is on a unified budget that consolidates all financial activities and allocations.3. **Federal Outlays and Existing Laws**: - A crucial aspect of the federal budget process is that **most federal outlays are determined by existing laws**. The majority of spending is mandatory, driven by prior legislation; these include funds for entitlement programs like Social Security, Medicare, and Medicaid.4. **Budget Approval by Congress**: - Unlike the proposition that **Congress must approve a budget with at least a two-thirds majority vote**, the actual process requires a simple majority for budget approval. Budgets and appropriations often reflect partisan negotiations but are typically passed with a simple majority.5. **Balancing the Federal Budget**: - The notion that **the federal budget must be balanced each year because the volume of international trade reduces if the government has a surplus or a deficit** is not a standard requirement. The U.S. often operates with deficits, and balanced budgeting on an annual basis is not a mandated practice. Various economic strategies, including deficit spending, are employed based on broader fiscal policies and objectives.Understanding these finer points of the federal budget process helps in comprehending the broader economic and legislative landscape of the U.S. government.

The federal budget is considered as the estimation of the government revenue and spending for each…

Vhich of the following is true of the federal budget process in the U.S.? O a. Detailed budgeting allows the party in power to reward supporters. O b. Congress approves a budget that separates the capital budget and the operating budget. O . Most federal outlays are determined by existing laws. O d. Congress must approve a budget with at least a two-thirds majority vote. O e. The federal budget must be balanced each year because the volume of international trade reduces if the government has a surplus or a deficit.

Vhich of the following is true of the federal budget process in the U.S.? O a. Detailed budgeting allows the party in power to reward supporters. O b. Congress approves a budget that separates the capital budget and the operating budget. O . Most federal outlays are determined by existing laws. O d. Congress must approve a budget with at least a two-thirds majority vote. O e. The federal budget must be balanced each year because the volume of international trade reduces if the government has a surplus or a deficit.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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