Annually Balanced Government Budgets

question 98

Multiple Choice

Annually balanced government budgets

• A)are easy to implement due to the total control of government over its budget components in the short run.
• B)would allow the level of government expenditures to be independent of the changes in real GDP.
• C)would reduce the size of output gaps.
• D)would undermine the success of stabilization policies implemented by the government.
• E)would require the federal government to control both fiscal and monetary policy.

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Definitions:

Fraudulent Misrepresentation

The intentional act of making a false statement about an important fact to induce another person into entering a contract or transaction.

Intentional Harm

Deliberate actions taken by an individual or entity that are meant to cause injury or damage to another.

Conversion

In law, the unauthorized act of possessing or controlling personal property belonging to another, effectively converting it to one's own use.

Nuisance

An act, condition, or thing that interferes with the use or enjoyment of property or may be harmful or annoying to others.