Multiple Choice
Assume that the economy is in a recession and there is a budget deficit. A strict balanced-budget rule that would require the Federal government to balance its budget during a recession would be
A) expansionary and worsen the effects of the recession.
B) contractionary and worsen the effects of the recession.
C) contractionary and counter the effects of the recession.
D) expansionary and counter the effects of the recession.
Correct Answer:
Verified
Correct Answer:
Verified
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