Do Economists Believe That the Budget Should Be Balanced Each

question 344

Multiple Choice

Do economists believe that the budget should be balanced each fiscal year?

• A)Yes, a budget should be balanced annually; otherwise persistent budget deficits can cause havoc in the economy.
• B)Yes, as the law states that both the federal and state budgets should always be balanced.
• C)Yes, since the balanced budget multiplier is larger, so it makes the economy grow faster.
• D)No, a budget should be balanced only on average; it can be in a deficit during a recession and offset by surpluses when the economy is doing well.

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