A Fiscal Rule Which Involves a Ceiling to Government Borrowing

Multiple Choice

A fiscal rule which involves a ceiling to government borrowing as a percentage of GDP

A) prohibits the use of contractionary fiscal policy when the economy is already at the ceiling.
B) prohibits the use of expansionary fiscal policy when the economy is already at the ceiling.
C) prevents the use of discretionary fiscal policy at any time as long as the government abides by the rule.
D) B and C