Multiple Choice
Which of the following is part of the synthesis view of fiscal policy?
A) During a severe recession, the best policy is a "balanced budget policy."
B) During a recession, higher real interest rates and lower net exports will help direct the economy back to full employment.
C) Since changes in discretionary policy are easy to time, fiscal policy should be altered in response to each minor disturbance.
D) Automatic stabilizers help reduce the fluctuations in aggregate demand and output.
Correct Answer:
Verified
Correct Answer:
Verified
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