Government's Efforts to Stabilize the Business Cycle Through Fiscal Policy

Multiple Choice

Government's efforts to stabilize the business cycle through fiscal policy can destabilize the economy because of:

A) the time necessary to draw up a budget appropriate to the circumstances.
B) a negative interaction between fiscal and monetary policy due to the multiplier effect.
C) a tendency of prices to change faster than the interest rate.
D) business cycles that are closely synchronized to the political cycle.