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 must do.
B) Such a policy would require government to increase its spending when tax receipts fell.
C) Such a policy became popular between the 1930s and 1960s.
D) Such a policy would guarantee that the economy always remained at its potential level.
E) Such a policy could worsen a contractionary gap.