If fiscal policy is going to exert a stabilizing impact on the economy, it must be
A) instituted by the Federal Reserve system.
B) expansionary during an economic boom but restrictive during a recession.
C) timed correctly.
D) passed by a three-fifths majority in Congress.

Question

Quizplus · Accepted Answer

Fiscal policy must be timed correctly to stabilize the economy, as it needs to be expansionary during a recession and restrictive during a boom to counteract economic fluctuations.

If Fiscal Policy Is Going to Exert a Stabilizing Impact