Time Lags in the Design,authorization,and Implementation of Fiscal Policy Reduce

question 130

True/False

Time lags in the design,authorization,and implementation of fiscal policy reduce its effectiveness.
In the time it takes for fiscal policy to take effect,the economy could begin to improve on its own due to other internal or external shocks that may have occurred.

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Definitions:

Signature Cards

Documents that a bank or financial institution requires account holders to sign, creating a record of the account holder's signature for verification purposes.

Deposit Tickets

Paper forms used to credit deposited funds to a bank account.

Days' Sales Uncollected

A financial metric that measures the average number of days it takes for a company to collect payment after a sale has been made.

Liquidity

The ability of an asset to be quickly converted into cash without significantly affecting its market price.