Question #66
Countries that entered the current crisis with budget surpluses or smaller deficits will as a result
- have a better chance of minimising the real damage from the downturn because they have more fiscal room to provide stimulus.
- have no better or worse chance of minimising the real damage from the downturn.
- encounter less chance of stifling their recoveries through inflation.
Answer #651
Answer: have no better or worse chance of minimising the real damage from the downturn.
Explanation
Please read Fiscal sustainability 101 - Part 3 for further material or post a comment if you want further explanation.