The Accepted Philosophy on U

question 62

Multiple Choice

The accepted philosophy on U.S.federal deficits prior to the Great Depression was that:

• A)the budget should be balanced cyclically.
• B)a budget deficit does not matter as long as the economy is at full employment.
• C)the budget should be annually balanced.
• D)deficits dampen aggregate demand in the short run and reduce the federal debt.
• E)spending decreases during expansions and increases during recessions.