Which of the Following Is True of an Annually Balanced

question 54

Multiple Choice

Which of the following is true of an annually balanced federal budget?

• A)Most economists agree that the federal government should balance its budget just as each household must do.
• B)Such a policy would require government to increase its spending when tax receipts fell.
• C)Such a policy became popular between the 1930s and 1960s.
• D)Such a policy would guarantee that the economy always remained at its potential level.
• E)Such a policy could worsen a contractionary gap.

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Definitions:

Stereotype Threat

The risk of confirming negative stereotypes about an individual's racial, gender, or cultural group which can impair their performance.

Expectation

Beliefs about the future, specifically about what is likely to happen or what someone thinks should happen.

Realistic Group Conflict Theory

A theory which asserts that the initial negative feelings between groups are often based on a real conflict or competition regarding scarce resources.

Stereotype Threat Theory

The theory that individuals may underperform in situations where they fear confirming negative stereotypes about their social group.