Which of the Following Best Defines the Political Business Cycle

Multiple Choice

Which of the following best defines the political business cycle?

A) the fact that about every four years some politician advocates greater government control of the Bank of Canada
B) the potential for a central bank to use monetary policy to stimulate the economy and help the incumbent get re-elected
C) the part of the business cycle that reflects reluctance by politicians to smooth out the business cycle
D) the changes in output created by the monetary rule the Bank of Canada must follow