According to the budget philosophy of functional finance, _____
a. the budget should be balanced annually
b. surpluses should be run during periods of prosperity and deficits should be run during recessions
c. the government budget should be whatever is necessary to have the economy operate at potential GDP
d. the budget should never be in balance
e. the rate of growth in the national debt should equal the rate of growth in the money supply
c
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Which of the following is not an example of a type of factor of production?
A. Land B. Labor C. Government D. Capital
An informed party can use ________ to give information to an uninformed or lesser-informed party
A) signaling B) screening C) an individual mandate D) market noise
An equilibrium point beyond a potential GDP is termed as
a. deflationary gap. b. recessionary gap. c. inflationary gap. d. acceleration gap
Which of the following is a cost of economic growth?
A. the sacrifice of current consumption B. inflation in consumption goods C. the sacrifice of future consumption D. excessive depletion of a nation's natural resources