单选题 Proper timing of fiscal policy is important if the government is to:

A、 generating revenues from taxes and sales equal to its expenditures.
B、 stimulate economic activity during a recession and restrain the economy during an inflationary boom.
C、 increasing the supply of loanable funds needed to place downward pressure on the real rate of interest.

【正确答案】 B

【答案解析】If fiscal policy is going to reduce economic instability, changes in policy must stimulate the economy during a recession and restrain it during an inflationary boom.