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Most Economists Believe That Balancing the Government Budget Over the Business

Question 66

Multiple Choice

Most economists believe that balancing the government budget over the business cycle, rather than for each fiscal year,


A) is absolutely necessary for prudent management of the economy.
B) is a worthy idea but requires accurate forecasting and definition of the business cycle.
C) is the same as an annually balanced budget.
D) would be pro- cyclical.
E) would stabilize the economy and produce an annual budget balance of zero.

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