Which of the Following Creates the Least Risk That Stabilization

Multiple Choice

Which of the following creates the least risk that stabilization policy will be either ineffective or counterproductive?

A) Uncertainty regarding the magnitude of the expenditure multiplier
B) The possibility of a Ricardian-equivalence saving response to a tax cut perceived to be temporary
C) The likelihood of crowding out following a tax reduction
D) The decision lag associated with monetary policy
E) The implementation lag associated with fiscal policy