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The Modern Consensus View of Fiscal Policy Stresses

Question 139

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The modern consensus view of fiscal policy stresses


A) that the federal government should always balance its budget.
B) that offsetting factors make fiscal policy much less effective than the Keynesian view suggested.
C) that proper timing of fiscal policy is very difficult to achieve,rendering fiscal policy less useful as a stabilization tool.
D) that both b and c are true.

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