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Which One of the Following Is TRUE

Question 69

Multiple Choice

Which one of the following is TRUE?


A) To the extent that Congress relies on discretionary fiscal policy as a tool of stabilization, it must be willing to run budget deficits in some years.
B) To the extent that Congress relies on discretionary fiscal policy as a tool of stabilization, it will be able to offset fluctuations in business activity without any time lags.
C) Automatic stabilizers are used to stimulate aggregate supply, whereas discretionary fiscal policy is used to stimulate aggregate demand.
D) Automatic stabilizers are used to stimulate aggregate demand, whereas discretionary fiscal policy is used to stimulate aggregate supply.

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