If the Effects of Expansionary Fiscal Policy Hit When the Economy

Multiple Choice

If the effects of expansionary fiscal policy hit when the economy is already expanding,

A) the effects could lead to even deeper recession.
B) the policy will have no effect.
C) the policy is called an automatic stabilizer.
D) it may lead to excessive aggregate demand and inflation.
E) it will lead to high rates of unemployment along with high rates of inflation,known as stagflation.