A Disadvantage of Functional Finance Is That It _____

Multiple Choice

A disadvantage of functional finance is that it _____

A) does not focus on producing the potential level of output in an economy.
B) increases the level of unemployment during recessions.
C) lets chronic deficits magnify into a national debt, allowing them to reach an alarming level.
D) requires that the budget is balanced even during times of war.
E) magnifies fluctuations in the business cycle.