Effective Fiscal Policy Can Be Difficult to Enact Because

question 118

Multiple Choice

Effective fiscal policy can be difficult to enact because:

• A) most of the money is lost to corruption.
• B) the economy rarely needs fiscal stimulus.
• C) the government lacks all relevant information needed to decide the magnitude of change.
• D) All of these are true.

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Definitions:

Threat of Punishment

A method used to decrease the likelihood of a behavior by warning of negative consequences.

Dehydration

A condition resulting from excessive loss of body water, impairing normal bodily functions.

Outstanding Performance

Exceptionally high achievement or skill level in a particular area or activity exceeding the standard norms.

Fixed Pattern

A sequence of behaviors or events that is predictable and consistent, often observed in natural or systematic processes.