If the Canadian federal government adopted a formal balanced budget rule,during times that GDP was rising it would have to
A) increase tax rates and/or increase spending which would destabilize the economy.
B) decrease spending and transfer payments while holding tax rates constant.
C) decrease tax rates and/or increase spending which would destabilize the economy.
D) decrease interest payments on the debt.
E) decrease tax rates and/or decrease spending which would destabilize the economy.
Correct Answer:
Verified
Q99: Consider a government with an outstanding stock
Q100: Consider a closed-economy AD/AS model.If an increase
Q101: If the Canadian federal government adopted a
Q102: It can be argued that a government
Q103: Financing a government budget deficit by increasing
Q105: The diagram below is for a closed
Q106: An annually balanced government budget is a
Q107: In the long run,the government budget will
Q108: If the government were able to operate
Q109: An annually balanced government budget would tend
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents