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It Will Be Difficult to Institute Fiscal Policy in a Stabilizing

Question 29

Multiple Choice

It will be difficult to institute fiscal policy in a stabilizing manner because politicians will find


A) it more attractive to raise taxes than to increase spending.
B) it attractive to increase taxes during a recession, but they will be reluctant to reduce them during an expansion.
C) budget deficits attractive during a recession, but they will be reluctant to run budget surpluses during an expansion.
D) budget surpluses attractive during a recession, but they will be reluctant to run budget deficits during an expansion.

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