Which of the Following Is Not a Weakness of Fiscal

question 65

Multiple Choice

Which of the following is not a weakness of fiscal policy as a tool of economic stabilization?

• A)It is ineffective in dealing with stagflation.
• B)Its correct implementation depends on an accurate estimate of potential output.
• C)It is subject to lags.
• D)Households may not respond to changes they perceive as temporary.
• E)Households may not respond to changes they perceive as permanent.

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Definitions:

Orders

Directives issued by an authority, such as a court or government agency, that require parties to act or refrain from acting in a certain way.

Administrative Procedure Act

A law in the United States governing the process by which federal agencies develop and issue regulations, including a requirement for public participation.

Informal Rulemaking

A regulatory process involving the publication of a proposed rule and the solicitation of public comments before the rule is finalized.

Enabling Statute

Legislation that gives a government entity or agency the authority to implement and enforce specific laws.