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) allows chronic deficits that magnify into national debt,allowing it to reach an alarming level.
D) requires that the budget is balanced even during times of war.
E) magnifies fluctuations in the business cycle.