The Lag Problem Associated with Fiscal Policy Is Due Mostly

question 48

Multiple Choice

The lag problem associated with fiscal policy is due mostly to

• A)the fact that business firms make investment plans far in advance.
• B)the political system of checks and balances that slows down the process of implementing fiscal policy.
• C)the time it takes for changes in government spending or taxes to affect the interest rate.
• D)All of the above are correct.

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Definitions:

Asians

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Levittown

One of the first majorly successful mass-produced suburban housing developments in the U.S., known for its affordable houses that facilitated the growth of the American middle class.

White Flight

White Flight refers to the phenomenon where white residents migrate away from urban areas to suburbs or farther, often in response to the racial integration of neighborhoods or schools.

Deurbanization

The process in which there is a decrease in the urban population, typically as a result of economic, social, or environmental factors, leading to the growth of rural areas or smaller cities.