One Reason for Not Requiring a Balanced Federal Budget at All

question 28

Multiple Choice

One reason for not requiring a balanced federal budget at all times is that with a balanced-budget rule:

• A) expenditures are not limited because, if the government wants to raise expenditures, it just raises taxes.
• B) in a recession even the automatic stabilizing powers of our system of taxes and transfers could not work.
• C) the distorting features of the tax system are minimized.
• D) it is possible to shift the burden of a war from current to future generations.

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Definitions:

Rods and Cones

Photoreceptor cells in the retina responsible for vision in low light (rods) and color vision and detail (cones).

Bipolar Cells

Bipolar cells are a type of retinal neuron that transmit signals from the photoreceptors (cones and rods) to ganglion cells, which then transmit visual information to the brain.

Ganglion Cells

Neurons located in the retina that receive visual information from photoreceptors and transmit it to the brain.

Neural Signals

Electrical or chemical signals transmitted by neurons to communicate with each other or to muscles or glands.