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All of the Following,except One,are Arguments Against the Use of Counter-Cyclical

Question 32

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All of the following,except one,are arguments against the use of counter-cyclical fiscal policy to close a recessionary gap.Which is the exception?


A) Counter-cyclical fiscal policy can be inflationary.
B) Counter-cyclical fiscal policy is subject to serious time lags.
C) Counter-cyclical fiscal policy can increase interest rates and crowd out private investment spending.
D) Counter-cyclical fiscal policy can reduce budget deficits,but this would also lower the exchange rate.

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