The Use of Fiscal Policy Is Limited Because

question 19

Multiple Choice

The use of fiscal policy is limited because

• A) there is never a long enough time lag.
• B) the economy is almost always at full employment.
• C) the President may have different goals than Congress.
• D) time lags associated with fiscal policy may cause the policy to take effect too late to solve the problem it was supposed to address.

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Definitions:

Financial

Financial pertains to matters related to money, finance, or the economic resources of management, investment, and expenditure.

Statutory Laws

Laws enacted by a legislative body, such as Congress or parliament, that must be followed by citizens in the jurisdictions where they apply.

Legislative Bodies

Institutions responsible for making laws in a country or community, such as parliaments or congresses.

Provincial Governments

The administrative bodies governing the provinces of a country, responsible for local regulations and policies.