Assume that laws have been passed that require the federal government to run a balanced budget. During a recession, the government will want to implement _____________________, but may be unable to do so because such a policy would ____________________________.
A. contractionary fiscal policy; lead to a budget deficit
B. discretionary fiscal policy; lead to a budget surplus
C. contractionary fiscal policy; lead to a budget surplus
D. expansionary fiscal policy; lead to a budget deficit
Answer:D
Assume that laws have been passed that require the federal government to run a balanced budget. During a recession, the government will want to implement _____________________, but may be unable to do so because such a policy would ____________________________.
A. contractionary fiscal policy; lead to a budget deficit B. discretionary fiscal policy; lead to a budget surplus C. contractionary fiscal policy; lead to a budget surplus D. expansionary fiscal policy; lead to a budget deficit
Explanation: Type: Multiple Choice