The Implementation Lag for Fiscal Policy Tends to Be Much

question 257

Multiple Choice

The implementation lag for fiscal policy tends to be much longer than for monetary policy because fiscal policy requires

• A) changes in required reserves.
• B) changes in open-market operations.
• C) changes in congressional-approved spending and tax programs.
• D) changes in exports and imports.

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Definitions:

Specific Performance

A legal remedy in contracts law requiring a party to perform their part of the contract, rather than simply paying damages for failing to do so.

Equitable Remedy

An equitable remedy is a judicial order enforcing a party to act or refrain from acting in a certain way, typically used when monetary damages are inadequate to resolve the harm.

Exculpatory Clause

A part of a contractual agreement that releases one party from liability for any wrongdoings towards the other.

Liability Waiver

A document in which one party agrees to relinquish the right to pursue legal action against another party for potential losses or damages.