Fiscal Policy Is Difficult to Implement Quickly Because

Multiple Choice

Fiscal policy is difficult to implement quickly because

A) it requires political negotiations.
B) much of government spending is nondiscretionary and cannot be changed.
C) increases in tax rates affect consumer spending gradually.
D) it requires political negotiations, and much of government spending is nondiscretionary and cannot be changed.
E) it requires political negotiations, and increases in tax rates affect consumer spending gradually.