Multiple Choice
Which of the following describes functional finance?
A) Budget deficits during recessions are covered by budget surpluses during expansions.
B) Budget deficits ensure that the economy produces at its potential output.
C) Budgets are balanced annually, except during war.
D) Budget deficits do NOT occur.
Correct Answer:

Verified
Correct Answer:
Verified
Q20: Suppose autonomous net taxes decline by $40
Q21: Which of the following describes a cyclically
Q22: Why were the Keynesian theory and policies
Q23: Suppose a $100 autonomous net tax is
Q24: <span class="ql-formula" data-value="\begin{array} { c c c
Q26: What does the steepness of the short-run
Q27: Other things constant, what causes a decrease
Q28: Suppose the government increases its purchases by
Q29: In 2012, which of the following countries
Q30: Exhibit 11-2<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4905/.jpg" alt="Exhibit 11-2