Which of the Following Is a Potential Problem with a Cyclically

Multiple Choice

Which of the following is a potential problem with a cyclically balanced-budget fiscal policy?

A) Governments can raise and lower spending levels at will.
B) The life of the business cycle is often too short.
C) Governments never cut taxes.
D) Governments find it easier to cut spending in periods of an inflationary gap than raise spending in periods of a recessionary gap.
E) Governments find it easier to raise spending in periods of a recessionary gap than cut spending in periods of an inflationary gap.