Asked by Olivia Egede on Jul 04, 2024
Verified
If we passed a constitutional amendment requiring a balanced budget every year,this would probably
A) make our recessions into depressions.
B) prevent recessions.
C) create inflations.
D) raise interest rates.
Balanced Budget
When federal tax receipts equal federal government spending.
Constitutional Amendment
A formal change or addition proposed and ratified according to the procedures specified in a constitution, altering the document's framework or principles.
- Evaluate the correlation between state fiscal operations, the rates at which the government borrows money, and the federal budgetary gap.
Verified Answer
BR
breldy rodriguezJul 06, 2024
Final Answer :
A
Explanation :
Requiring a balanced budget every year may cause the government to cut spending during times of recession, which could worsen the unemployment rate and potentially prolong the recession to a depression. Additionally, it may also limit the government's ability to provide economic stimulus during downturns.
Learning Objectives
- Evaluate the correlation between state fiscal operations, the rates at which the government borrows money, and the federal budgetary gap.