An Annually Balanced Government Budget Is a

question 79

Multiple Choice

An annually balanced government budget is a

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

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Definitions:

Location Economies

The cost advantages gained by a business due to its geographical position, often influencing its competitiveness.

Meganational Strategy

A business strategy that emphasizes operating and competing in multiple countries as one global market.

Avoids Adaptation

a strategy where a business does not significantly alter its product or services to accommodate different cultural or market requirements in its expansion or operations.

Differentiated Needs

The varying requirements and preferences of customers or markets that businesses seek to satisfy with customized products or services.