Which of the Following Is an Argument in Favor of a Balanced

question 278

Multiple Choice

Which of the following is an argument in favor of a balanced budget rule?

• A)Some economists believe that rules are better than discretion.
• B)Per-capita debt is small relative to lifetime income.
• C)The effect of deficit spending on future generations depends in part on what the government buys.
• D)Other government policies also redistribute income across generations.

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Definitions:

Investment Funds

Pools of capital from multiple investors used to collectively purchase securities while each investor retains ownership and control of their own shares.

Demand

In economics, demand is the quantity of a good or service that consumers are willing and able to purchase at various prices during a certain period of time.

Great Recession

A severe global economic downturn that began in 2007 and lasted until about 2009, marked by significant declines in the housing market, financial failures, and a surge in unemployment rates.

Fiscal Policy

A government's strategy for managing its budget through taxation and spending to influence the economy.