In which situation would policymakers be unable to neutralize the effect on the economy?
A) The federal government runs a deficit
B) An increase in the price of oil
C) Imports exceed exports
D) Consumer confidence declines

Question

Quizplus · Accepted Answer

Policymakers may be able to neutralize some economic effects of the other options through various policies such as adjusting interest rates, taxes, or spending. However, an increase in the price of oil is largely outside of their control, and can have a significant impact on the economy through higher inflation, reduced consumer spending, and increased production costs.

In Which Situation Would Policymakers Be Unable to Neutralize the Effect