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:

Merchandise Sold

Pertains to the goods that have been sold to customers by a company during a specific period, often accounted for in the sales revenue section of an income statement.

Accounts Payable

The amount a company owes on short-term debts to its vendors or suppliers.

Investing Activities

Part of the cash flow statement that details cash inflow and outflow related to the purchase and sale of long-term investments and assets.

Financing Activities

Transactions related to changes in the equity and debt of an organization, including issuing shares, paying dividends, and borrowing funds.