Fiscal policy works best when it is:

Question

Quizplus · Accepted Answer

Timely fiscal policy refers to actions taken quickly in response to economic conditions, such as during a recession. Targeted policy focuses on specific sectors, such as infrastructure or education, to boost economic growth. Temporary policy ensures that the government does not continue to spend beyond what is necessary after the economy has stabilized. Therefore, timely, targeted, and temporary fiscal policy is most effective in promoting economic growth while also being fiscally responsible.

Fiscal Policy Works Best When It Is