Multiple Choice
The lag problem associated with fiscal policy is due mostly to
A) the fact that business firms make investment plans far in advance.
B) the political system of checks and balances that slows down the process of implementing fiscal policy.
C) the time it takes for changes in government spending or taxes to affect the interest rate.
D) All of the above are correct.
Correct Answer:
Verified
Correct Answer:
Verified
Q12: Suppose there was a large increase in
Q43: Which of the following policy alternatives would
Q44: Opponents of active stabilization policy<br>A)advocate a monetary
Q45: The primary argument against active monetary and
Q46: For the following questions,use the diagram below:<br>Figure
Q47: Monetary policy<br>A)can be implemented quickly and most
Q49: Suppose stock prices rise.To offset the resulting
Q50: Which U.S.president,when asked why he had proposed
Q51: Critics of stabilization policy argue that<br>A)"animal spirits"
Q52: In the early 1960s,the Kennedy administration made