Multiple Choice
Which of the following will make it difficult to institute fiscal policy in a stabilizing manner?
A) Politicians will find it more attractive to raise taxes than to increase spending.
B) Politicians will find it attractive to increase taxes during a recession,but they will be reluctant to reduce them during an expansion.
C) Politicians will find budget deficits attractive during a recession,but they will be reluctant to run budget surpluses during an expansion.
D) Politicians will find budget surpluses attractive during a recession,but they will be reluctant to run budget deficits during an expansion.
Correct Answer:

Verified
Correct Answer:
Verified
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