Multiple Choice
Fiscal policy can be an inappropriate macroeconomic stabilization tool, since
A) it has a larger outside lag than monetary policy
B) it may have side effects that can distort decisions in the private sector
C) it will always involve a loss of tax revenue for the government
D) it has no short-run effects
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
Q27: Economic forecasters<br>A)almost always time their proposed policy
Q28: If the monetary growth rate is far
Q29: The best policy response to a disturbance
Q30: If it is unknown whether a disturbance
Q31: If a central bank targets inflation, then<br>A)a
Q33: Active stabilization policy may actually destabilize the
Q34: Policies designed to stabilize economic activity are
Q35: Automatic stabilizers<br>A)prolong the inside lag but reduce
Q36: If we have more information about the
Q37: Nominal GDP targeting implies that<br>A)there is an