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17 June, 07:57

Assume that the economy is in a recession and there is a budget deficit. A strict balanced-budget amendment that would require the Central government to balance its budget during a recession would be: 
A. Expansionary and worsen the effects of the recession
B. Contractionary and worsen the effects of the recession
C. Contractionary and counter the effects of the recession
D. Expansionary and counter the effects of the recession

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  1. 17 June, 10:25
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    I believe it's C. Contractionary and counters the effects of the recession.
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