Which one of the following is an area of agreement among modern macroeconomists with regard to the use of fiscal policy?
A) Congressional action is necessary if automatic stabilizers are going to be an effective stabilization tool.
B) It is difficult to time changes in discretionary fiscal policy in a manner that will promote stability.
C) Fiscal policy is more potent than the early Keynesian view implied.
D) Budget deficits are a highly effective tool with which to combat a severe recession.
Correct Answer:
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