If State Governments Began Using a Five-Year Rolling-Average Budgeting Procedure

Multiple Choice

If state governments began using a five-year rolling-average budgeting procedure as opposed to the current practice of no rolling average, which would the likely result be?

A) State financing would become more procyclical
B) Balanced-budget requirements in state constitutions would be much less procyclical
C) The need for automatic stabilizers at the federal level would increase
D) State governments would run a greater risk of running short of funds during recessions