Fiscal stimulus to aid recovery from recession

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Fiscal stimulus to aid recovery from a recession will be most effective in the long run if______________

A. it begins gradually and increases as the economy approaches full employment.

B. it is accompanied by tight monetary policy from the central bank.

C. it can be reversed as the business cycle approaches the next peak.

D. the effective fiscal multiplier is low enough to guarantee a strong crowding-out effect.

Reference no: EM13836918

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