Suppose legislation in Canada required annually balanced government budgets.This legislation would
A) require the Bank of Canada to expand and contract the money supply according to an annual timetable.
B) force a balanced budget that could turn a minor downturn in the economy into a serious and prolonged recession.
C) force increased levels of government spending automatically increasing the size of the government debt.
D) allow deficits but prevent the government from running surpluses.
E) require the Bank of Canada to lower interest rates during periods of inflation.
Correct Answer:
Verified
Q115: The Canadian tax and transfer system acts
Q116: The policy objective of an annually balanced
Q117: Most economists believe that balancing the government
Q118: Until the onset of the most recent
Q119: Suppose legislation required the government's budget to
Q120: Decreasing government expenditures in order to reduce
Q122: Suppose the government implemented cyclically balanced government
Q123: Suppose the government decided to ensure that
Q124: The 2008-2009 global recession had an effect
Q125: Transfer payments (such as welfare payments and
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents