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Annually Balanced Government Budgets

Question 46

Multiple Choice

Annually balanced government budgets


A) would require the federal government to control both fiscal and monetary policy.
B) would reduce the size of output gaps.
C) would undermine the success of stabilization policies implemented by the government.
D) are easy to implement due to the total control of government over its budget components in the short run.
E) would allow the level of government expenditures to be independent of the changes in real GDP.

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