Most Mainstream Macroeconomists Oppose a Strict Requirement to Balance the Federal

question 147

Multiple Choice

Most mainstream macroeconomists oppose a strict requirement to balance the federal budget annually because they conclude that such a requirement would

• A)increase real interest rates and drive out investment spending.
• B)eliminate monetary policy as a stabilization tool.
• C)force government to undertake expansionary fiscal policy during inflation and contractionary fiscal policy during recession.
• D)expand the size of the federal government.

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Definitions:

Age Misrepresentation

The intentional act of presenting one's age as different from their true age, often in a legal context.

Life Insurance

A contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person.

Insurance Application

A formal request or proposal to an insurance company for coverage, detailing personal or organizational information relevant for underwriting.

Risk Management

The process of identifying, assessing, and prioritizing risks followed by coordinated efforts to minimize, monitor, and control the probability or impact of unfortunate events.