Which of the following is (are) true? I. For economists who favor a functional finance approach to the federal budget, their first priority is to determine whether the budget is in surplus or deficit.
II) Slowly growing and fully employed economies do not have important public debt or deficit issues.
III) The government's primary microeconomic job, according to those who favor functional finance, is to provide the public goods and services citizens want.

Question

Quizplus · Accepted Answer

Functional finance prioritizes the role of government in managing the economy, focusing on outcomes like full employment and economic stability rather than the budget balance. Therefore, statement III is true, as it aligns with the functional finance perspective on the government's role in providing public goods and services. Statements I and II do not accurately reflect the principles of functional finance.

Which of the Following Is (Are) True? I