The Policy Objective of an Annually Balanced Government Budget

question 57

Multiple Choice

The policy objective of an annually balanced government budget

• A)is feasible and would be stabilizing.
• B)is easy to achieve but would be destabilizing.
• C)would be stabilizing,but is difficult to achieve.
• D)is difficult to achieve and would be destabilizing.
• E)would eliminate the swings in real GDP.

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Definitions:

Breach of Contract

The act of breaking any terms and conditions that were mutually agreed upon in a legally enforceable contract.

Consideration

An item of worth traded between entities within a contract, essential for the contract to be considered enforceable by law.

Common Law

A body of law derived from judicial decisions of courts and similar tribunals, as opposed to statutes or official legislation.

Statute Law

Written laws passed by a legislative body, forming part of a country’s legal framework.