A Major Problem with the Implementation of an Annually Balanced

question 149

Multiple Choice

A major problem with the implementation of an annually balanced budget is that it:

• A)allows the national debt to burgeon with chronic deficits.
• B)relies upon government officials to budget for surpluses during economic booms in order to cover deficits during recessions.
• C)requires annual revenues to match with outlays even during times of war,when there is a sudden increase in military expenditures.
• D)magnifies the fluctuations in the business cycle.
• E)dampens swings in the business cycle.

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Definitions:

Purchases

Transactions where goods or services are acquired in exchange for money or other forms of payment.

Aeon

An immeasurably long period of time, often used in the context of cosmic or geological epochs.

Carrefour

Carrefour is a multinational retailer headquartered in France, known for being one of the largest hypermarket chains in the world, offering a wide range of food and non-food products.

Metro Group

A global diversified retail and wholesale/cash and carry group, focusing on food and general merchandise but also offering a variety of services.