Suppose Legislation in Canada Required Annually Balanced Government Budgets

Suppose legislation in Canada required annually balanced government budgets. This legislation would

A) force increased levels of government spending automatically increasing the size of the government debt.
B) require the Bank of Canada to lower interest rates during periods of inflation.
C) allow deficits but prevent the government from running surpluses.
D) require the Bank of Canada to expand and contract the money supply according to an annual timetable.
E) force a balanced budget that could turn a minor downturn in the economy into a serious and prolonged recession.