Typically,discretionary Fiscal Policy Changes Have to Be Approved by the Parliament

question 16

Multiple Choice

Typically,discretionary fiscal policy changes have to be approved by the parliament so a detailed proposal needs to be put forward by the government; parliamentary approvement may take a significant amount of time.As a result,________ for fiscal policy can be several months longer than for monetary policy.

• A) the response and recognition lags
• B) the recognition lag
• C) the response lag
• D) all three policy lags

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