If Legislation Required the Budget to Be Balanced at All

question 34

Multiple Choice

If legislation required the budget to be balanced at all times, _____ as an automatic stabilizer of the business cycle.

• A)fiscal policy could not operate
• B)it would reduce the effectiveness of monetary policy
• C)it would increase the effectiveness of discretionary fiscal policy
• D)monetary policy could not operate

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Definitions:

Cuban Revolution

A significant political movement that led to the overthrow of Cuban dictator Fulgencio Batista in 1959 and the establishment of a socialist state led by Fidel Castro.

Noncommunist Government

A governmental system which does not adhere to the principles of communism, characterized by private or mixed ownership of means of production, and typically operates under democratic or authoritarian regimes.

Spread of Communism

The propagation or expansion of communist ideology and political systems around the world, particularly during the 20th century.

War in Indochina

Denotes a series of conflicts in the Indochina Peninsula in Southeast Asia, including the struggle for independence from French colonial rule and the Vietnam War.