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