Suppose there was a debate regarding military budgets and the Democrat was arguing for a budget increase from $400 billion to $405 billion and the Republican was arguing for the budget to increase to $425 billion. Further, suppose military salaries and procurement of the same weapons systems are project to rise 2%. The Republican accuses the Democrat of proposing a cut to the military while, the Democrat insists his plan increases military spending. What is going on here?

A. The Democrat is cutting the military only if you use current services budgeting.
B. Both are proposing cuts. They are both lying, regardless of budgeting technique.
C. Both are proposing increases. The Republican is lying, regardless of budgeting technique.
D. The Republican is cutting the military only if you use baseline budgeting.


Answer: A

Economics

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