If the functional finance approach to federal budgeting is used,the federal government's budget deficit should be zero.

Question

Quizplus · Accepted Answer

The functional finance approach does not prioritize a balanced budget, but rather focuses on using fiscal policy to achieve specific economic goals, such as full employment and price stability. Therefore, a budget deficit may be necessary to achieve these goals.

If the Functional Finance Approach to Federal Budgeting Is Used,the