If a Fiscal Policy Change Is Going to Exert a Stabilizing

Multiple Choice

If a fiscal policy change is going to exert a stabilizing impact on the economy, it must

A) add demand stimulus during a slowdown but restraint during an economic boom.
B) exert an expansionary impact during all phases of the business cycle.
C) restrain aggregate demand during all phases of the business cycle.
D) keep the government's budget in balance.