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8 October, 18:04

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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Answers (2)
  1. 8 October, 20:56
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    Do not support such rule. This is the right answer
  2. 8 October, 21:18
    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.
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