Which of the Following Is Not a Valid Criticism of Discretionary

question 47

Multiple Choice

Which of the following is not a valid criticism of discretionary fiscal policy?

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

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Definitions:

Adopting Completely

The process of fully embracing or integrating new practices, ideas, or changes without reservation.

Mutual Adjustments

The process by which negotiating parties modify their positions and demands to reach an agreement.

Coordinating Adjustment

The process of making changes or modifications to ensure different elements work together effectively.

Conscious Changes

Deliberate modifications or adjustments made with awareness and intention.