It is not completely accurate to assume that government spending is exogenous because
A) some government spending is controlled by automatic policy rules that depend on current economic conditions.
B) some government spending is adjusted at the discretion of policy makers, who observe conditions across the economy and react.
C) it is, to a significant degree, controlled by politicians who want to continue to be elected and therefore respond to the will of the people.
D) all of the above.
E) none of the above.
Correct Answer:
Verified
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