In theory, fiscal policy should:
A. increase aggregate demand in bad times and pay off the bill in good times.
B. increase aggregate demand in bad times and increase aggregate supply in good times.
C. reduce aggregate demand in bad times and take the profits in the good times.
D. increase aggregate demand in bad times and increase inflation in good times.
Ans: A. increase aggregate demand in bad times and pay off the bill in good times.
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Indicate whether the statement is true or false
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Answer the following statement true (T) or false (F)