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The $464 million reserve in the budget adopted
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Author:  charanrana [ 28 Sep 2022, 09:14 ]
Post subject:  The $464 million reserve in the budget adopted

The $464 million “reserve” in the budget adopted by the legislature in June turns out to have been based mainly on wishful thinking. Because of tax cuts approved by voters on the June ballot, along with the continuing economic slump and other events affecting income and expenses, the actual reserve in prospect may be as low as $7 million.

The author is probably leading to which of the following conclusions?

A. These facts warrant an investigation into who squandered $457 million.

B. A reserve in the budget is not so necessary as we might wish it to be.

C. The legislature would be wise not to add any new spending to the budget adopted in June.

D. The economic slump will probably not last much longer, but while it does the legislature must adjust the budget accordingly.

E. Legislative budgets are typically careless and unheeding of variable factors which may affect their accuracy.

Author:  iroshank05 [ 29 Sep 2022, 02:58 ]
Post subject:  Re: The $464 million reserve in the budget adopted

can someone provide me the detailed explanation for the above question .

Author:  charanrana [ 29 Sep 2022, 09:37 ]
Post subject:  Re: The $464 million reserve in the budget adopted

Each of the other choices requires assumptions and conclusions not supported or implied by the argument.
The argument’s stress on reduced funds leads logically to the conclusion that further spending is unwise.

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