Which of the Following Does Not Limit the Effectiveness of Discretionary

Multiple Choice

Which of the following does not limit the effectiveness of discretionary fiscal policy?

A) the difficulty of estimating the natural rate of unemployment
B) time lags involved in enacting appropriate legislation
C) the difficulty of getting an accurate measure of the rate of inflation
D) time lags involved in recognizing the need for fiscal policy
E) the tendency for people to distinguish between temporary and permanent changes in their income