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:

Euphoria

A state of intense happiness and self-confidence, often beyond what is considered normal.

THC

The major active ingredient in marijuana; triggers a variety of effects, including mild hallucinations.

Hallucinogen

A substance that induces alterations in perception, mood, and consciousness, often creating visual or auditory distortions.

Marijuana

A psychoactive drug from the Cannabis plant used for medical or recreational purposes.