Question

The classical economists considered the balanced budget to be neutral in its effects on the economy.

• A. True
• B. False

Answer 1

The correct option is A True

The classical economist advocated and proposed the concept of balanced where according to them, a balanced budget refers to a budget where the government expenditure and government revenue are equal and there is no surplus budget or deficit budget in the economy. Therefore, the effect of budget remains neutral on the economy.