If the Government Were to Give Investment Tax Credits in Recessions

If the government were to give investment tax credits in recessions and take them away again in booms, then the economy would

A) operate at a permanently higher level of output
B) never experience any business cycles
C) be less stable since businesses would hold back on investments early in recessions in anticipation of higher tax credits later
D) always operate at less than capacity
E) be more stable since long policy lags would no longer exist