The Effectiveness of Expansionary Fiscal Policy Is Limited When Which

Multiple Choice

The effectiveness of expansionary fiscal policy is limited when which of the following occurs?

A) Continual budget surpluses leading to low public debt.
B) Temporary budget deficits leading to high public debt.
C) Continual budget surpluses leading to high public debt.
D) Temporary budget deficits leading to low public debt.
E) Continual budget deficits leading to high public debt.