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Why is a balanced budget considered a positive ... - SS2 Economics Meaning of Balanced Budget Question

Why is a balanced budget considered a positive financial situation?

A

It helps to ensure financial stability and sustainability 

B

It encourages the accumulation of debt

C

It results in a negative balance

correct option: a

(A balanced budget is considered a positive financial situation because it helps to ensure financial stability and sustainability. This implies that the exact revenue derived is allocated to spend on a similar amount of expenses, ensuring that there is no instability in terms of income, price and employment of labour and resources)

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