Which of the Following About Fiscal Policy Is True

Multiple Choice

Which of the following about fiscal policy is true?

A) Modern forecasting methods make it relatively easy to time fiscal policy changes in a manner that will help stabilize the economy.
B) Legislative action is necessary if automatic stabilizers are going to smooth the ups and downs of the business cycle.
C) Proper timing of changes in discretionary fiscal policy is both crucially important and difficult to achieve.
D) Both the crowding-out and new classical theories indicate that expansionary fiscal policy will exert a powerful impact on aggregate demand.