Those Who Advocate a Balanced Budget Fiscal Policy Would Agree

Multiple Choice

Those who advocate a balanced budget 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 an effective way of avoiding extreme levels of unemployment or inflation.
C) The economy is 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 serious problem.