True or False - The budget of the federal government was in balance

True or False - The budget of the federal government was in balance

• A. True
• B. False
• C. Not specified
• D. Partially balanced

Answer: (A)

A balanced budget means the government’s receipts (taxes and other revenues) equal its outlays in a given year, so there’s no need to borrow to cover spending. In the period the question is drawing from, there were years when the federal budget did balance, so the statement is true for that context. It’s important to note this isn’t a permanent condition for the entire decade—later in the 1960s, spending on programs like the Great Society and the Vietnam War led to deficits in many years, which is why the broader history shows a different pattern.

A balanced budget means the government’s receipts (taxes and other revenues) equal its outlays in a given year, so there’s no need to borrow to cover spending. In the period the question is drawing from, there were years when the federal budget did balance, so the statement is true for that context. It’s important to note this isn’t a permanent condition for the entire decade—later in the 1960s, spending on programs like the Great Society and the Vietnam War led to deficits in many years, which is why the broader history shows a different pattern.