If Lags Cause the Effects of Fiscal Policy to Be

Multiple Choice

If lags cause the effects of fiscal policy to be delayed for a long period of time,

A) the policy will magnify recessions and eliminate expansion.
B) there is no way the policy can smooth out the business cycle.
C) the policy will magnify expansions and eliminate recessions.
D) fiscal policy will do nothing to the economy.
E) there is a risk that the policy can actually magnify the business cycle.