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The baseline scenario reflecting current laws presents the more optimistic view of the future path of fiscal policy. Tax revenues are projected to reach much higher levels than in recent history.

Which phrase gives the BEST clue to the meaning of "baseline"?

A. reflecting current laws
B. more optimistic view
C. much higher levels
D. in recent history



Answer :

GinnyAnswer

Final answer:

Baseline refers to the starting scenario reflecting current laws and policies.


Explanation:

Baseline refers to the scenario that reflects current laws and policies, serving as a starting point for comparison. It provides the foundation against which potential changes are measured. In the context of fiscal policy, the baseline scenario assumes that tax revenues will increase to higher levels than previously seen, based on existing laws.


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