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:

SmartArt

A graphical tool included in Microsoft Office that helps users create visually appealing diagrams and charts.

WordArt Text Effect

A feature in various software applications that enables the creation of stylized text with special effects, making it visually appealing.

Glow

A visual effect that creates a halo of light around an object or text, often used in graphic design.

SmartArt

A graphics tool included in Microsoft Office programs that allows users to create professional quality diagrams and charts with ease.