Fiscal Policy Is Typically

question 47

Multiple Choice

Fiscal policy is typically:

• A)extremely flexible because most government spending is discretionary.
• B)extremely flexible provided policy lags are short.
• C)flexible despite the presence of implementation problems.
• D)difficult to implement quickly.

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Definitions:

CRA

In the context of Canadian taxation, CRA stands for Canada Revenue Agency, the federal agency responsible for tax collection and enforcement.

Lease Payments

Regular payments made by a lessee to a lessor for the use of an asset.

Incremental Cash Flows

The net additional cash flows generated by a company as a result of taking on a new project or investment.