If the Canadian federal government adopted a formal balanced budget rule, during times that GDP was rising it would have to
A) decrease tax rates and/or increase spending which would destabilize the economy.
B) decrease interest payments on the debt.
C) decrease tax rates and/or decrease spending which would destabilize the economy.
D) decrease spending and transfer payments while holding tax rates constant.
E) increase tax rates and/or increase spending which would destabilize the economy.
Correct Answer:
Verified
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