The Accepted Philosophy on U

Multiple Choice

The accepted philosophy on U.S.federal deficits prior to the Great Depression was that:

A) the budget should be balanced cyclically.
B) a budget deficit does not matter as long as the economy is at full employment.
C) the budget should be annually balanced.
D) deficits dampen aggregate demand in the short run and reduce the federal debt.
E) spending decreases during expansions and increases during recessions.