Most mainstream macroeconomists oppose a strict requirement to balance the federal budget annually because they conclude that such a requirement would
A)increase real interest rates and drive out investment spending.
B)eliminate monetary policy as a stabilization tool.
C)force government to undertake expansionary fiscal policy during inflation and contractionary fiscal policy during recession.
D)expand the size of the federal government.

Question

Quizplus · Accepted Answer

The Answer of Most mainstream macroeconomists oppose a strict requirement to balance the federal budget annually because they conclude that such a requirement would
A)increase real interest rates and drive out investment spending.
B)eliminate monetary policy as a stabilization tool.
C)force government to undertake expansionary fiscal policy during inflation and contractionary fiscal policy during recession.
D)expand the size of the federal government.

Most Mainstream Macroeconomists Oppose a Strict Requirement to Balance the Federal