Question

The congress of the country of Delta is debating budget issues and decides to cancel $5 billion worth of tax cuts in order to balance the budget. An argument against a balanced budget rule would be:________.

a. that there is no need for a balanced budget rule since the budget automatically adjusts and balances itself
b. that benefits from the tax cut were forgone.
c. that the budget deficits and debt do not have any impact on the economy.
d. the fact that the government of Delta should have reduced spending instead.

Answer 1

b. that benefits from the tax cut were forgone.

Step-by-step explanation:

The congress of the country of Delta is debating budget issues and decides to cancel $5 billion worth of tax cuts to balance the budget. An argument against a balanced budget rule would be: "that benefits from the tax cut were forgone."

This implies that the country of Delta would miss out on the benefits they could have derived from implementing the tax cut policy.

Some of the benefits include

1. more money into circulation.

2. Improve the saving and investment