Most Mainstream Macroeconomists Oppose a Strict Requirement to Balance the Federal

question 56

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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