Why is maintaining a balanced budget important in the context of long-term fiscal policy?

• A. A balanced budget allows for unlimited borrowing, increasing future interest payments and promoting economic growth.
• B. A balanced budget has no impact on borrowing or future interest payments.
• C. A balanced budget prevents excessive borrowing, reducing future interest payments and promoting sustainable economic growth.
• D. A balanced budget increases borrowing, reducing future interest payments and promoting economic growth.

Answer: (C)