Which One of the Following Reduces the Likelihood That Real-World

Multiple Choice

Which one of the following reduces the likelihood that real-world fiscal policy will promote economic stability?

A) Policy planners do not know whether a tax cut is expansionary or restrictive.
B) Policy makers need to know what economic conditions will be like 6 to 18 months into the future, and this is extremely difficult to forecast accurately.
C) Policy planners are reluctant to implement expansionary fiscal policy even during a serious recession.
D) Public choice theory suggests that elected political officials will generally favor restrictive fiscal policy.