Which of the Following Does Not Limit the Effectiveness of Discretionary

question 128

Multiple Choice

Which of the following does not limit the effectiveness of discretionary fiscal policy?

• A)the difficulty of estimating the natural rate of unemployment
• B)time lags involved in enacting appropriate legislation
• C)the difficulty of getting an accurate measure of the rate of inflation
• D)time lags involved in recognizing the need for fiscal policy
• E)the tendency for people to distinguish between temporary and permanent changes in their income

---

Definitions:

Zuckerman

Marvin Zuckerman is a psychologist known for his research on sensation seeking, a trait describing the need for varied, novel, and complex sensations and experiences.

Sensation Seeking

A trait characterized by the search for experiences and feelings that are varied, novel, complex, and intense, and by the willingness to take physical, social, legal, and financial risks for the sake of such experiences.

Sensation Seeking Scale

A psychological assessment tool designed to measure an individual's propensity for seeking novel, complex, and intense sensations and experiences.

Paper and Pencil Questionnaire

A traditional method of data collection where respondents manually record their responses to questions on paper.