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Which of the Following Statements Is NOT a Potential Problem

Question 2

Multiple Choice

Which of the following statements is NOT a potential problem associated with cyclically balancing the federal budget?


A) Different phases of the business cycle are not of equal length or severity.
B) Forecasting the turning point of the economy is very difficult.
C) Inflationary pressures can take hold, leading to the need to enact extreme contractionary policy measures.
D) Politicians find it difficult to cut spending.

Correct Answer:

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