Asked by
Chloe Souerdyke
on Nov 11, 2024Verified
If the functional finance approach to federal budgeting is followed,the federal government's budget deficit should be zero.
Functional Finance
An economic theory asserting that government should finance its spending to meet explicit economic objectives, such as full employment, rather than aiming to balance budgets.
Budget Deficit
The financial situation where a government's expenditures exceed its revenues, leading to a shortfall that must be financed through borrowing.
- Know the implications of following a functional finance approach to federal budgeting.
Verified Answer
KS
Learning Objectives
- Know the implications of following a functional finance approach to federal budgeting.