Business, 17.07.2020 19:01 TheMixingToad
There are several important philosophies regarding budget balancing. One way in which they differ is in terms of the time span over which the budget should be balanced. Another difference among budget philosophies concerns whether the balanced budget is as important as other economic goals. Which of the following budget philosophies advocates allowing deficits during recessions that are offset by surpluses during expansions?
1. Cyclically balanced budget
2. Annually balanced budget
3. Functional finance
A major problem with the implementation of this philosophy is that it:
1. Relies upon government officials to budget for surpluses during boom times in order to cover deficits during recessions
2. Magnifies business cycle fluctuations
3. Can allow the national debt to burgeon with chronic deficits
Answers: 1
Business, 21.06.2019 17:10
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Business, 22.06.2019 11:40
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There are several important philosophies regarding budget balancing. One way in which they differ is...
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