Which of the Following Is NOT a Lag That Affects

question 58

Multiple Choice

Which of the following is NOT a lag that affects the working of fiscal policy?

• A) a problem being recognised and action being taken
• B) action being taken and effects happening
• C) a problem happening and it being noticed
• D) action being taken and expectations being formed

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Definitions:

Assistance Program

A government or private program designed to provide financial or other support to individuals or groups in need.

Earned Income

Money received for work performed such as wages, salaries, or professional fees.

Tax Credit

A direct reduction in tax liability (not merely a reduction of taxable income) that taxpayers receive for certain expenditures or investments.

Taxpayers

Individuals or entities that are required to pay taxes to a government authority, based on income earned or property owned.