Which of the Following Is Most Representative of the Functional

Multiple Choice

Which of the following is most representative of the functional finance view of the macroeconomy?

A) The economy is self-regulating and the best thing the government can do to enhance stability is to stay out of the way.
B) Budgets should be balanced. Doing otherwise is morally wrong.
C) The government should decide on tax and spending plans based on their effects on the economy.
D) Crowding out almost completely cancels out any deficit spending, so fiscal policy is likely to be ineffective.