Which of the Following Is Not an Argument in Favor

question 14

Multiple Choice

Which of the following is not an argument in favor of requiring the government to balance its budget?

• A)Government debt imposes higher taxes or more borrowing on future generations.
• B)A balanced budget will smooth the business cycle.
• C)Deficits lower national saving.
• D)Recent history shows that Congress will run deficits even when deficits are not justified by war or recession.

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Definitions:

Expense

A financial outlay that is incurred through business operations or activities.

Equipment

Tangible, long-term assets used in the operations of a business, not intended for sale.

Supplies

Supplies are consumable items used in the everyday operations of a business, such as office materials, that are not resold to customers.