試題詳解

23. Which of the following statements is correct?
(A) Maintaining fiscal balance in a recession helps to stabilize the economy.
(B) Automatic stabilizers refer to the fact that economic shocks are partly offset by households smoothing their consumption in the face of variable income.
(C) The multiplier on a fiscal stimulus is higher when the economy is functioning at full capacity.
(D) A fiscal stimulus can be implemented by raising spending to directly increase demand, or by cutting taxes to increase private sector demand.