The Lag Problem Associated with Fiscal Policy Is Due Mostly

question 48

Multiple Choice

The lag problem associated with fiscal policy is due mostly to

• A)the fact that business firms make investment plans far in advance.
• B)the political system of checks and balances that slows down the process of implementing fiscal policy.
• C)the time it takes for changes in government spending or taxes to affect the interest rate.
• D)All of the above are correct.

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Definitions:

MAO Inhibitors

Monoamine Oxidase Inhibitors are a class of antidepressant drugs that work by preventing the breakdown of monoamine neurotransmitters, increasing their availability in the brain.

Disinhibition Theory

A psychological theory suggesting that reduced inhibition of impulses or behaviors can lead to an increase in those behaviors, particularly in social or emotional contexts.

Alcohol Use

The consumption of beverages containing ethanol, which can have both social and addictive aspects, impacting health and behavior.

Substance Abuse

A pattern of drug use in which people rely on a drug chronically and excessively, allowing it to occupy a central place in their life.