Which of the Following Statements About Time Lags and Fiscal

question 110

Multiple Choice

Which of the following statements about time lags and fiscal policy is the most accurate?

• A)Changes in fiscal policy that involves changes in government spending on public works projects do not involve significant time lags.
• B)Changes in federal taxes can be implemented easily by the prime minister without the approval of Parliament.
• C)The lag time between when a fiscal policy is needed and when it is actually implemented is considerable.
• D)Once an appropriate fiscal policy has been determined, it can be implemented quickly.

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Definitions:

Size Differences

Variations in the scale or magnitude of entities, often impacting operations, strategies, or market positioning.

EBIT

Stands for Earnings Before Interest and Taxes, and is an indicator of a company's profitability excluding interest and tax expenses.

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time, typically expressed as an annual rate.