Discretionary Fiscal Policy Is Risky Because It Is Hampered by

question 66

Multiple Choice

Discretionary fiscal policy is risky because it is hampered by

• A)recognition lag, impact lag, and law-making lag.
• B)recognition lag, business cycle lag, and law-making lag.
• C)business cycle lag, impact lag, and law-making lag.
• D)recognition lag, impact lag, and business cycle lag.
• E)recognition lag, inflation lag, and law-making lag.

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Definitions:

Public Offering

The process of selling stocks or bonds to the public for the first time, also known as an initial public offering (IPO) for stocks.

Dilution %age Ownership

The reduction in existing shareholders' ownership percentage of a company as a result of the company issuing more shares.

Rights Offering

An offer to existing shareholders to purchase additional shares in the company at a discount to the market price within a fixed period.

Corporate Finance

Involves managing a company's financial activities, including investments, capital structuring, and long-term financial planning.