Which of the Following Are a Limitation of Fiscal Policy

question 179

Multiple Choice

Which of the following are a limitation of fiscal policy?
I. There is a lag between recognizing that fiscal policy might be needed and when it actually takes
II. Economic forecasts might be incorrect.
III. Monetary policy might counter fiscal policy.

• A) I only
• B) I and III
• C) I and II
• D) I, II and III

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Definitions:

Market Price per Share

The current price at which a company's shares are being traded on the stock market.

Unusual Items

Financial events that are not typical for the normal business operations and are unlikely to recur, affecting a company's financial statements.

Accounting Principles

Fundamental guidelines or rules that underpin the process of accounting, including concepts like the matching principle, revenue recognition, and historical cost.

Short-term Creditors

Lenders or entities from whom a company has borrowed money or resources that are to be repaid within one year.