#1.In an expansion, holding everything else constant, a previously existing budget deficit will automatically (Decrease / Increase), partly because taxes (Decrease / Increase) #2.
There are several important philosophies regarding budget balances. 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 involves whether the budget balance is as important as other economic goals.
Which of the following budget philosophies advocates keeping the budget in balance every year, except during wartime?
1. cyclically balanced budget
2. Functional finance
3. Annually balanced budget
#3. 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
#4.Unlike pennies and nickels, which cost more to produce than they are worth, paper money and quarters are
A. Examples of token money
B. A good store of value
C. Useful as a medium of exchange