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8 October, 22:30

You are an economic adviser to a candidate for national office. She asks you for a summary of the economic consequences of a balanced-budget rule for the federal government and for your recommendation on whether she should support such a rule. How do you respond?

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  1. 8 October, 23:18
    0
    Recommendation: Do not support such rule

    Explanation:

    This type of budget rules restrain governments from employing taxes and transfers as automatic stabilizers. This due to the fact that these rules tend to bring deficits and surpluses.
  2. 9 October, 02:29
    0
    Do not support such rule. This is the right answer
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