The Major Weakness of Fiscal Policy as a Way of Affecting

question 39

Multiple Choice

The major weakness of fiscal policy as a way of affecting the economy is that ______.

• A) it depends on consumer behavior
• B) it depends on decisions made by foreign governments
• C) it requires politicians to make redistributive taxing and spending decisions
• D) it requires changes to be made in very narrow increments
• E) there is no evidence that it works

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Definitions:

Collected

Refers to the process of gathering or accumulating items, information, or funds.

Electronic Funds Transfers

The transfer of money between accounts by electronic means rather than the use of cash or paper documents.

Float Time

The period between when a check is deposited into a bank account and the time the funds are available for use.

Substitute Check

A digital reproduction of an original paper check that is legally considered the same as the original for processing payments.