Which of the Following Best Expresses the Central Idea of Countercyclical

question 44

Multiple Choice

Which of the following best expresses the central idea of countercyclical fiscal policy?

• A) Planned deficits are experienced during economic booms and planned surpluses during economic recessions.
• B) The balanced-budget approach is the proper criterion for determining annual budget policy.
• C) Actual deficits should equal actual surpluses during a period of deflation.
• D) Deficits are planned during economic recessions, and surpluses are utilized to restrain inflationary booms.