A major problem with the implementation of an annually balanced budget is that it:
a. allows the national debt to burgeon with chronic deficits
b. relies upon government officials to budget for surpluses during economic booms in order to cover deficits during recessions.
c. requires annual revenues to match with outlays even during times of war, when there is a sudden increase in military expenditures.
d. magnifies the fluctuations in the business cycle.
e. dampens swings in the business cycle.
d
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A person who is ____________ is willing to accept any fair gamble.
Fill in the blank(s) with the appropriate word(s).
If managers do not choose to maximize profit, but pursue some other goal such as revenue maximization or growth,
A) they are more likely to become takeover targets of profit-maximizing firms. B) they are less likely to be replaced by stockholders. C) they are less likely to be replaced by the board of directors. D) they are more likely to have higher profit than if they had pursued that policy explicitly. E) their companies are more likely to survive in the long run.