Multiple Choice
Which of the following is true about time lags and fiscal policy?
A) Changes in federal taxes can be implemented easily by the President without the approval of Congress.
B) Changes in fiscal policy that involves changes in government spending on public works projects do not involve significant time lags.
C) Once an appropriate fiscal policy has been determined it can be implemented quickly.
D) The lag time between when a fiscal policy is needed and when it is actually implemented is considerable.
Correct Answer:
Verified
Correct Answer:
Verified
Q3: After legislation is signed into law, the
Q4: If MPC = 0.75, a $40 billion
Q5: Why does a larger government budget deficit
Q6: A tax rate cut, increase in government
Q7: How does the multiplier work and what
Q9: The issuance of debt involves some intergenerational
Q10: A decrease in transfer payments or an
Q11: An investment tax credit, which would lower
Q12: Which group or groups buy U.S. public
Q13: If the MPC is 2/3, then 2/3