If State Governments Began Using a Five-Year Rolling-Average Budgeting Procedure

question 76

Multiple Choice

If state governments began using a five-year rolling-average budgeting procedure as opposed to the current practice of no rolling average, which would the likely result be?

• A)State financing would become more procyclical
• B)Balanced-budget requirements in state constitutions would be much less procyclical
• C)The need for automatic stabilizers at the federal level would increase
• D)State governments would run a greater risk of running short of funds during recessions

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