The Difficulties of Using Fiscal Policy to Affect the Economy

question 57

Multiple Choice

The difficulties of using fiscal policy to affect the economy include:

• A) the automatic stabilizing effect.
• B) the crowding out effect.
• C) the time lag of policy's effect on AD.
• D) the multiplier effect.

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Definitions:

Rapid Test

A diagnostic test designed to provide quick results, often used in medical screening for various conditions.

Bilirubin

A yellow compound that occurs in the normal catabolic pathway that breaks down heme in vertebrates and is excreted in bile.

Catheterization

To insert a catheter into a cavity (e.g., urinary bladder to remove urine) to remove body fluid.

Reagent Strips

Strips used in medical diagnostics to test fluids for the presence of various substances, such as glucose or protein.