One of the Shortcomings of Fiscal Policy Is That

Multiple Choice

One of the shortcomings of fiscal policy is that:

A) it has significant time lags, which make it more effective.
B) it takes effect immediately, so it is the best policy to use in an economic crisis.
C) it affects aggregate demand indirectly through the interest rate.
D) it has time lags, so sometimes it may end up destabilizing the economy.