A key difference between functional finance and sound finance is that in the functional finance approach, the government has the potential for:
A)a more active role in spending and taxing decisions.
B)a less active role in spending and taxing decisions.
C)no role since functional finance holds that on moral principle the budget should be balanced.
D)more active role in spending and taxing but only during depressions.

Question

Quizplus · Accepted Answer

Functional finance advocates for a government's active role in managing the economy through spending and taxing decisions, aiming to achieve full employment and price stability, rather than focusing solely on balancing the budget.

A Key Difference Between Functional Finance and Sound Finance Is