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In Fiscal Policy, the Inside Lags Can Take a Long

Question 6

Multiple Choice

In fiscal policy, the inside lags can take a long time because:


A) macroeconomic data take time to gather and can be unreliable.
B) changes in taxes and government spending require approval from Congress and the president.
C) consumers are usually slow in spending their tax rebate checks.
D) A and B are both correct.

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