Many Economists Think Discretionary Fiscal Policy Is of Limited Effectiveness

question 145

Multiple Choice

Many economists think discretionary fiscal policy is of limited effectiveness in stabilizing the economy because
1) the multiplier effects associated with fiscal policy take a long time;
2) changes in government spending and taxation are too small in relation to the size of the economy to have much effect;
3) there are long and uncertain lags in implementing fiscal policy.

• A)1 only
• B)2 only
• C)3 only
• D)1 and 2
• E)1 and 3

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Definitions:

Sarcoplasm

The cytoplasm of a muscle fiber that contains organelles, including mitochondria and the sarcoplasmic reticulum, involved in muscle contraction.

Myofibrils

Long, slender threads found in muscle cells, responsible for muscle contraction through the actin and myosin filaments they contain.

Striations

A series of ridges, furrows or linear marks, frequently found in muscle tissue, rocks, and other materials, often indicating a specific characteristic or formation process.

Muscles Contract

The process where muscle fibers shorten in length to produce movement or exert force.