Which of the Following Is True of an Annually Balanced

question 51

Multiple Choice

Which of the following is true of an annually balanced federal budget?

• A) Most economists agree that the federal government should balance its budget just as each household does.
• B) Such a policy would require the government to increase its spending when tax receipts decrease.
• C) Such a policy became popular between the 1930s and 1960s.
• D) Such a policy guarantees that an economy reaches its potential level.
• E) Such a policy could worsen a contractionary gap.