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How Do Critics of Discretionary Stabilization Policy View Frequent Changes

Question 45

Multiple Choice

How do critics of discretionary stabilization policy view frequent changes in spending and tax policy?


A) The changes make the economy smoother, although it may not look that way to individual firms.
B) The changes make life more difficult and hectic for Congress and the Fed.
C) The changes smooth out the business cycle, making planning easier.
D) The changes cause more instability in the economy and make planning more difficult.

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