What Are the Four Major Limits to Fiscal Policy

question 173

Multiple Choice

What are the four major limits to fiscal policy?

• A) crowding out,a drop in the bucket,a matter of timing,and real shocks
• B) poor information,the multiplier effect,the bandwagon effect,and election timing
• C) sticky wages,Ricardian equivalence,recognition lag,and crowding out
• D) aggregate demand deficiency,unemployed resources,long-run expenses,and implementation lag

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Definitions:

Awareness

The state or condition of being conscious of something, including perceiving, understanding, and being informed.

Sender's Signature

The written or electronic endorsement by the sender on a document, indicating approval or authentication.

Business Letter

A formal document typically used for communication between companies or between a company and its clients, suppliers, or other external parties.

Signature

A person's name written in a distinctive way as a form of identification in authorizing documents.