Multiple Choice
Most mainstream macroeconomists oppose a strict requirement to balance the federal budget annually because they conclude that such a requirement would
A) increase real interest rates and drive out investment spending.
B) eliminate monetary policy as a stabilization tool.
C) force government to undertake expansionary fiscal policy during inflation and contractionary fiscal policy during recession.
D) expand the size of the federal government.
Correct Answer:

Verified
Correct Answer:
Verified
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