Which of the Following Statements Is Correct

Multiple Choice

Which of the following statements is correct?

A) The cyclically adjusted budget and the actual budget differ because the latter does not take government transfer payments into account.
B) The cyclically adjusted budget is less likely to show a deficit than is the actual budget.
C) The cyclically adjusted budget and the actual budget will show the same size deficit or surplus in any given fiscal year.
D) The cyclically adjusted budget is more likely to show a deficit than is the actual budget.