An Implementation Lag Happens Because

question 9

Multiple Choice

An implementation lag happens because

• A) it is easy to implement fiscal policy.
• B) it is difficult to determine when the economy is turning up or down.
• C) in most nations,one or more governing bodies must approve government spending or new tax policies.
• D) it takes time for the complete effects of monetary and fiscal policy to materialize.
• E) it is impossible to implement fiscal policy with a divided House of Representatives and Senate.

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Definitions:

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