Multiple Choice
According to the functional finance budget philosophy,
A) deficits should never be used to stimulate the economy
B) automatic stabilizers should be eliminated
C) the government budget should be whatever is necessary to have the economy operate at potential GDP
D) each government spending program should be financed on the basis of its function
E) the federal budget should be balanced in the long run
Correct Answer:

Verified
Correct Answer:
Verified
Q2: The federal government spends more for national
Q3: Approximately _ of the budget falls into
Q4: The Budget Enforcement Act of 1990<br>A)was a
Q5: It took more than 200 years for
Q6: If the fraction of U.S.government securities held
Q8: Increased government borrowing to cover a budget
Q9: If the functional finance approach to federal
Q10: The difference between the federal budget deficit
Q11: Which of the following has been advanced
Q12: Increasing U.S.trade deficits result in<br>A)both c and