MCQOPTIONS
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| 1. |
According to the Keynesian model, the optimal fiscal policy is to |
| A. | Increase cyclical but not structural deficits during a recession |
| B. | Reduce cyclical and structural deficits during a recession |
| C. | Increase structural deficits during a recession |
| D. | Maintain a balanced budget in case of national emergency |
| Answer» B. Reduce cyclical and structural deficits during a recession | |