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All of the Following Make the Use of Fiscal Policy

Question 1

Multiple Choice

All of the following make the use of fiscal policy less attractive except


A) expansionary fiscal policy tends to cause inflation and offsets some of the increased consumer spending.
B) that it cannot be effective,unless it is accommodated with expansionary monetary policy.
C) the substantial margin of error in the value of the multiplier.
D) the legislative lag,which is the time it takes for Congress and the President to pass and implement the measure.
E) the crowding out effect,which is the decrease in private spending that occurs due to increased government spending.

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