One of the Shortcomings of Fiscal Policy Is That

question 58

Multiple Choice

One of the shortcomings of fiscal policy is that:

• A) it has significant time lags, which make it more effective.
• B) it takes effect immediately, so it is the best policy to use in an economic crisis.
• C) it affects aggregate demand indirectly through the interest rate.
• D) it has time lags, so sometimes it may end up destabilizing the economy.

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Definitions:

Computer-mediated Groups

are social or work groups that interact and communicate primarily through digital devices and platforms, such as email, social media, and messaging applications.

Electronic Meeting

involves participants engaging in a meeting via electronic means, such as video conferencing or web-based platforms, allowing for remote participation.

Social Media

Platforms and technologies that allow users to share content, interact, and create communities online.

The Grapevine

An informal channel of communication within an organization, characterized by personal, non-official information transmission.