An annually balanced government budget is a
A) destabilizer because fiscal policy is then pro-cyclical.
B) destabilizer because the fiscal year is longer than the business cycle.
C) stabilizer because it smooths out the peaks and troughs of the business cycle.
D) stabilizer because it allows greater flexibility in the design of fiscal policy.
E) stabilizer in most circumstances.
Correct Answer:
Verified
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A)result in
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