A Disadvantage of Having an Annually Balanced Budget Is That

question 91

Multiple Choice

A disadvantage of having an annually balanced budget is that government spending would have to:

• A)allow the national debt to burgeon with chronic deficits.
• B)decline during a recession to offset the increase in tax revenues.
• C)rise during a recession to match the increase in tax revenues.
• D)rise during an expansion to offset the decline in tax revenues.
• E)decline in a recession to match the decrease in tax revenues.