Which of the Following Is Not a Weakness of Fiscal

question 79

Multiple Choice

Which of the following is not a weakness of fiscal policy?

• A)Implementation of policy is difficult.
• B)Time lags in fiscal policy are long and variable.
• 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 short-run aggregate supply.

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Definitions:

Operating Divisions

Distinct areas within a company that are responsible for different operations, products, or markets, often treated as separate business units.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums, and are inevitable regardless of business activity.

Return On Investment (ROI)

A financial metric used to evaluate the efficiency of an investment, calculated as net profit divided by the cost of the investment.

Net Operating Income

A financial metric that calculates the profit generated from a company's normal business operations, excluding expenses and incomes from non-operational activities.