Countercyclical discretionary fiscal policy calls for:

A)
surpluses during recessions and deficits during periods of demand-pull inflation.
B)

deficits during both recessions and periods of demand-pull inflation.


C)
surpluses during both recessions and periods of demand-pull inflation.
D)

deficits during recessions and surpluses during periods of demand-pull inflation.

ANSWER:

D)
deficits during recessions and surpluses during periods of demand-pull inflation.