Multiple Choice
Those who advocate counter-cyclical fiscal policy would agree with all but one of the following statements.Which is the exception?
A) Governments should be non-interventionist.
B) Automatic stabilizers are not particularly effective.
C) The economy is not capable of automatic self-adjustment in response the problems of unemployment and inflation.
D) Counter cyclical fiscal policy is a powerful and effective tool.
E) Government budget deficits are a less serious problem than income gaps.
Correct Answer:

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Correct Answer:
Verified
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