Why Should the Government Balance Its Budget

question 5

Multiple Choice

Why should the government balance its budget?

• A)because government debt imposes higher taxes or more borrowing on current generations
• B)because a balanced budget will smooth the business cycle
• C)because deficits increase national saving
• D)because recent history shows that the government will not run deficits unless they are justified by war or recession

---

Definitions:

Unsolicited E-Mail

Email that is sent without the recipient’s consent, commonly referred to as spam.

Information Collection

The process of gathering, measuring, and analyzing information from various sources about potential markets, customers, competitors, and other economic factors.

Buzz

Informal communication that generates interest and excitement about a product, service, or event, often through social media or word of mouth.

Marketspace

An electronic digital environment where transactions and communication related to buying and selling occur.