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Question 3 Suppose legislation required the government to balance its budget annually. With regard to real Not yet GDP, this rule would be... answered Marked out of O a. Stabilising because it allows greater flexibility in the design of fiscal policy. 1.00 O b. Stabilising because it smooths out the peaks and troughs of the business cycle. O c. Destabilising because fiscal policy is then procyclical. Flag question O d. Destabilising because the fiscal year is longer than the business cycle. O e. Stabilising in most circumstances