Which of the Following Will Make It Difficult to Institute

question 160

Multiple Choice

Which of the following will make it difficult to institute fiscal policy in a stabilizing manner?

• A)Politicians will find it more attractive to raise taxes than to increase spending.
• B)Politicians will find it attractive to increase taxes during a recession,but they will be reluctant to reduce them during an expansion.
• C)Politicians will find budget deficits attractive during a recession,but they will be reluctant to run budget surpluses during an expansion.
• D)Politicians will find budget surpluses attractive during a recession,but they will be reluctant to run budget deficits during an expansion.

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