Chapter 10, Problem 17.12EP

Which of the following would be considered a sign of fiscal stress?

1. a.      Properly values that have remained unchanged over the last three years.
2. b.      An increase in defined pension benefits offered to employees.
3. c.       An increase in capital expenditures for necessary infrastructure repairs.
4. d.      Expenditures growing at a higher rate than revenues for the past three years.