Balancing the government's budget over the course of each business cycle
A) results in a stable economy at all times.
B) does not take into account the fact that the size of the deficits needed to reduce unemployment may not equal the size of the surpluses needed to moderate subsequent inflation.
C) guarantees a steady decrease in the national debt.
D) is a policy biased in favor of reducing unemployment at the cost of allowing persistent inflation.
E) is called functional finance.
Correct Answer:
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