Most of the government budget is mandatory spending through programs like Medicare and Social Security, and much of the rest is politically difficult to alter. Because of this:
A) fiscal policy is always undertaken only when there is a national crisis that motivates voters to seek change.
B) fiscal policy that involves raising taxes is more likely to be implemented than fiscal policy that involves borrowing money.
C) the amount of spending is unlikely to be implemented as economists suggest.
D) most spending is geared to perform as an automatic stabilizer, so that Congress is in fact largely irrelevant when it comes to providing a fiscal response to a recession.
Correct Answer:
Verified
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