Which One of the Following Is an Area of Continued

Multiple Choice

Which one of the following is an area of continued disagreement among modern macroeconomists with regard to the use of fiscal policy?

A) Automatic stabilizers help reduce the fluctuations in aggregate demand and output.
B) It is difficult to time changes in discretionary fiscal policy in a manner that will promote stability.
C) Fiscal policy is much less potent than the early Keynesian view implied.
D) Budget deficits are a highly effective tool with which to combat a severe recession.