With No Change in Fiscal Policy, the Budget

question 81

Multiple Choice

With no change in fiscal policy, the budget

• A)will run a surplus during a recession and a deficit during a boom.
• B)deficit will rise during a recession and fall during a boom.
• C)deficit will fall during a recession and rise during a boom.
• D)will remain unchanged by adverse economic conditions.

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Definitions:

Breach

The violation or non-fulfillment of a legal obligation, contract, or duty.

Nonperformance

The failure to act or perform a task or duty that is required by contract, obligation, or law.

Contractual Promise

A binding pledge or agreement between parties that is enforceable by law.

Unauthorized Alteration

A change made to a document, instrument, or agreement without the consent or knowledge of all parties involved, which can affect its validity or legality.