A Major Problem with the Implementation of an Annually Balanced

Multiple Choice

A major problem with the implementation of an annually balanced budget is that it _____

A) allows the national debt to burgeon with chronic deficits.
B) relies on government officials to budget for surpluses during economic booms in order to cover deficits during recessions.
C) requires annual revenues to match with outlays even during times of war, when there is a sudden increase in military expenditures.
D) magnifies fluctuations in the business cycle.
E) dampens swings in the business cycle.