Which of the Following Is NOT a Weakness of Fiscal

question 104

Multiple Choice

Which of the following is NOT a weakness of fiscal policy?  

• A) Time lags in fiscal policy are long and variable. 
• B) Fiscal policy works only during periods of stagflation. 
• C) Fiscal policy often affects only current income, but many economic decisions are made on the basis of permanent income. 
• D) Fiscal policy might have undesirable long-term effects on short-run aggregate supply.

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Definitions:

Modified Hinge Joint

A type of synovial joint that allows predominantly bending motion like a hinge but with limited rotational movement for added flexibility.

Condylar Joint

A type of synovial joint that allows movement but is constrained to one axis; for example, the joint between the skull and the atlas (first cervical vertebra).

Hyperextension

An excessive extension of a limb or part of the body beyond its normal limit.

Circumduction

A movement at a synovial joint where the limb moves in a circle.