A requirement to have an annually balanced federal budget would mean: A.That act

ID: 1092126 • Letter: A

Question

A requirement to have an annually balanced federal budget would mean:

A.That actual GDP would equal potential GDP every year.

B. That there would be no more recessionary gaps or inflationary gaps.

C. That the role of taxes and transfers as automatic stabilizers would be undermined.

D. That total household disposable income would be the same every year.

Unsaved Economists view investment spending as which of the following:

A. Purchase of bonds.

B. Spending on physical capital.

C. Mutual fund investing.

D. Purchase of stocks.

C. That the role of taxes and transfers as automatic stabilizers would be undermined.

B. Spending on physical capital.

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