The New Classical Critique of Fiscal Policy Asserts That

Multiple Choice

The new classical critique of fiscal policy asserts that

A) decreases in government spending and increases in taxes are largely offset by increases in savings.
B) recognition lags make it difficult to time fiscal policy.
C) implementation lags make it hard to get fiscal-policy proposals through the government.
D) impact lags make it difficult to know how much the spending multiplier will impact the total income in an economy.
E) increases in government spending and decreases in taxes are largely offset by increases in savings.