Which of the Following Is a Limitation of Discretionary Fiscal

question 40

Multiple Choice

Which of the following is a limitation of discretionary fiscal policy?
I.lawmaking lags
Ii.estimating potential GDP
Iii.income gap

• A)i only
• B)ii only
• C)iii only
• D)i and ii
• E)i,ii,and iii

---

Definitions:

Present Value Methods

A set of financial techniques used to calculate the current worth of a future stream of earnings or cash flows, taking into account the time value of money.

Time Value of Money

The concept that money available now is worth more than the same amount in the future due to its potential earning capacity.

Net Present Value Method

A financial analysis technique used to assess the profitability of an investment by calculating the difference between the present value of cash inflows and outflows.

Future Cash Inflows

Expected cash receipts or revenues generated from business activities in future periods.