An Annually Balanced Government Budget Is a

question 22

Multiple Choice

An annually balanced government budget is a

• A)destabilizer because fiscal policy is then pro-cyclical.
• B)destabilizer because the fiscal year is longer than the business cycle.
• C)stabilizer because it smooths out the peaks and troughs of the business cycle.
• D)stabilizer because it allows greater flexibility in the design of fiscal policy.
• E)stabilizer in most circumstances.

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Definitions:

Electrocardiogram

A test that measures the electrical activity of the heart to check for heart disease.

Waves

Oscillations or movements that transfer energy from one place to another, found in physical and electromagnetic contexts.

Electrocardiography Device

A medical device used to record the electrical activity of the heart over a period of time, commonly known as an ECG or EKG machine.

Cassette

A small plastic or metal container housing a spool of magnetic tape used for recording or playing back audio and video.