As large-scale production became more profitable during the Industrial Revolution, the easiest way to finance the required factories and heavy machinery was

Net exports equals the balance of trade surplus

Indicate whether the statement is true or false

Which of the following statements is true? a. Federal budget deficits became progressively smaller during the 1990s and turned into a surplus by 1998

b. Federal spending declined relative to GDP, while federal revenues rose relative to GDP during the 1980s. c. Functional finance says that policy makers should be concerned less with the economy's potential output and more with balancing the budget annually. d. A disadvantage of functional finance is that it increases the level of unemployment during recessions. e. A disadvantage of annual financed budget is that it dampens swings in the business cycle without increasing the national debt.