Suppose the government decided to ensure that its cyclically adjusted budget deficit was always zero. This policy would be problematic because
A) it would act as a built- in destabilizer.
B) it would require continual fiscal expansion.
C) it would tend to mean that net exports would be crowded out.
D) it would entail a rising debt- to- GDP ratio.
E) it would require continual fiscal contraction.
Correct Answer:
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