Which of the Following Describes Functional Finance

question 25

Multiple Choice

Which of the following describes functional finance?  

• A) Budget deficits during recessions are covered by budget surpluses during expansions. 
• B) Budget deficits ensure that the economy produces at its potential output. 
• C) Budgets are balanced annually, except during war. 
• D) Budget deficits do NOT occur.

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Definitions:

Social Norms

Shared guidelines or rules within a society that dictate appropriate behaviors and actions.

Elaborate Funerals

Funeral practices characterized by detailed and often elaborate ceremonial procedures.

Traditional Native American

Cultures, practices, beliefs, and social organization of the indigenous peoples of North America, respecting a wide diversity of regional and tribal identities.

Soul

The spiritual or immaterial part of a human being or animal, often regarded as immortal.