Which of the Following Is True of an Annually Balanced

Multiple Choice

Which of the following is true of an annually balanced federal budget?

A) Most economists agree that the federal government should balance its budget just as each household does.
B) Such a policy would require the government to increase its spending when tax receipts decrease.
C) Such a policy became popular between the 1930s and 1960s.
D) Such a policy guarantees that an economy reaches its potential level.
E) Such a policy could worsen a contractionary gap.