All of the Following Make the Use of Fiscal Policy

question 43

Multiple Choice

All of the following make the use of fiscal policy less attractive except

• A)that it cannot be effective unless it is accommodated with expansionary monetary policy.
• B)the substantial margin of error in the value of the multiplier.
• C)the legislative lag, which is the time it takes for Congress and the President to pass and implement the measure.
• D)the crowding out effect, which is the decrease in private spending that occurs due to increased government spending.

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Definitions:

Production Processes

The methods and sequences of operations involved in the manufacture or production of goods.

Overt Behavior

Overt behavior refers to observable actions and responses of an individual that can be seen and measured directly by others.

Retained

Kept in possession or memory; not lost or forgotten.

Self-reinforcement

The process by which individuals reward themselves for reaching certain goals or exhibiting desirable behaviors, thus encouraging repeated action.