Multiple Choice
What is the effect of lags in the approval and implementation of fiscal policy?
A) Lags weaken fiscal policy as a tool of economic stabilization.
B) Lags increase the effectiveness of fiscal policy as a tool of economic stabilization.
C) Lags help legislators to better assess which policies are most appropriate to adopt.
D) Lags make fiscal policy more responsive to the current economic environment.
Correct Answer:

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Correct Answer:
Verified
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