Large Federal Budget Deficits

question 19

Multiple Choice

Large federal budget deficits:

• A)can best be reduced by automatic stabilizers.
• B)make it difficult to use discretionary fiscal policy.
• C)in the mid to late 1980s were the result of a severe recession.
• D)constitute only about 1 percent of GDP.
• E)have little to do with the growth of the federal debt.

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