An attempt to maintain an annually balanced budget would
A) destabilize the economy.
B) cause output to remain at the full-employment level of real GDP.
C) stabilize the economy if investment is unaffected by changes in government spending;otherwise the economy will tend to be destabilized.
D) stabilize the economy.
E) have no effect on the level of,or the fluctuations in,real GDP.
Correct Answer:
Verified
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B).6.
C)1.
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