A Cyclically-Balanced Budget Philosophy Involves All,except One,of the Following

question 143

Multiple Choice

A cyclically-balanced budget philosophy involves all,except one,of the following.Which is the exception?

• A)It aims to balance the budget over the life of the business cycle.
• B)It requires that governments spend more at times and less at other times.
• C)It calls for budget deficits when there is recession and budget surpluses when there is an inflationary gap.
• D)It implies that a government balances its budget in each year.

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