Which of the following is not an argument in favor of requiring the government to balance its budget?
A)Government debt imposes higher taxes or more borrowing on future generations.
B)A balanced budget will smooth the business cycle.
C)Deficits lower national saving.
D)Recent history shows that Congress will run deficits even when deficits are not justified by war or recession.

Question

Quizplus · Accepted Answer

A balanced budget does not necessarily smooth the business cycle; in fact, it can be counterproductive during economic downturns when increased government spending might be needed to stimulate the economy.

Which of the Following Is Not an Argument in Favor