Compared with state and local government spending, the federal government: A. most often has a balanced budget
B. can spend more than 5% of its budget on net interest per year
C. spends more on education
D. spends about 4-5% of GDP on education
Compared with state and local government spending, the federal government:
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The correct answer is B. can spend more than 5% of its budget on net interest per year.
Explanation: The federal government often has higher expenditures on net interest due to its larger debt levels compared to state and local governments. State and local governments typically have balanced budgets and spend less on net interest as a percentage of their budgets. While federal spending includes areas like education, it does not outpace state and local spending overall.