Which of the Following Is NOT a Weakness of Fiscal

question 31

Multiple Choice

Which of the following is NOT a weakness of fiscal policy as a tool of economic stabilization?  

• A) Fiscal policy is ineffective in dealing with stagflation. 
• B) The correct implementation of fiscal policy depends on an accurate estimate of potential output. 
• C) Fiscal policy is subject to lags. 
• D) Households may NOT respond to changes in fiscal policy that are perceived as permanent.

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Definitions:

High Power Distance

A cultural dimension where there is acceptance of unequal power distribution within societies or organizations.

Power Distance

This concept refers to the extent to which less powerful members of institutions and organizations expect and accept that power is distributed unequally.

Venezuela

A country located on the northern coast of South America, known for its significant oil resources, rich cultural history, and recent socio-political issues.

Humane Orientation

A value or perspective that emphasizes compassion, caring, and concern for the well-being of others.