It Is ________ Difficult to Effectively Time Fiscal Policy Than

question 87

Multiple Choice

It is ________ difficult to effectively time fiscal policy than monetary policy because ________.

• A)more; fiscal policy can be quickly decided and changed
• B)more; fiscal policy takes longer to implement
• C)less; monetary policy takes longer to decide and change
• D)less; monetary policy takes longer to implement

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Definitions:

Capital Stock

The total amount of physical goods and financial assets that are used in the production of goods and services in an economy.

Depreciation

The measure of the reduction in value of an asset over time, often due to wear and tear.

Disposable Income

The amount of capital available for household expenditures and savings once income taxes have been removed.

Inventory

The goods and materials that a business holds for the ultimate goal of resale or repair.