The accepted philosophy on U.S. federal deficits prior to the Great Depression was that:
a. the budget should be balanced cyclically
b. a budget deficit does not matter as long as the economy is at full employment.
c. the budget should be annually balanced.
d. deficits dampen aggregate demand in the short run and reduce the federal debt.
e. spending decreases during expansions and increases during recessions.
c
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Refer to the above table. The capital account balance is
A) 0. B) -$260. C) -$200. D) -$155.
Government expenditures as a share of the U.S. economy are:
a. the largest in the world. b. the smallest in the world. c. smaller than most Western European countries. d. larger than Canada, France, and the United Kingdom but slightly smaller than Germany and Italy.
A currency depreciation is inflationary and probably also expansionary.
Answer the following statement true (T) or false (F)
If revenue is less than ________, profit is ________.
A. total cost; positive B. total fixed cost; positive C. total variable cost; zero D. total cost; negative