QUESTION IMAGE
Question
\meeting the spending targets in this budget meant some very difficult choices.\
president barack obama,
2012 budget message of the president
read the passage.
what did the president mean when he said he had to facevery difficult choices when creating a federal budget?
○ deciding which country to borrow from to finance spending
○ deciding what would be funded and what would be cut
○ deciding how to keep interest rates low on the national debt
○ deciding how much to increase tax rates
When creating a federal budget, resources are limited. Deciding what to fund (as there are many competing needs like education, defense, healthcare etc.) and what to cut (due to insufficient funds to meet all demands) is a core and difficult decision - making process. Borrowing decisions (first option) are more about financial mechanisms rather than the essence of budgetary choices. Keeping interest rates low (third option) is a monetary policy aspect not directly the "difficult choices" in budget creation. Tax rate decisions (fourth option) are part of revenue - related policies but not the main "difficult choices" about budget allocation like funding and cutting.
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deciding what would be funded and what would be cut