Fiscal policy is typically:
A)extremely flexible because most government spending is discretionary.
B)extremely flexible provided policy lags are short.
C)flexible despite the presence of implementation problems.
D)difficult to implement quickly.

Question

Quizplus · Accepted Answer

Fiscal policy, which involves government spending and taxation, often faces significant implementation delays due to the need for legislative approval and the time it takes to plan and execute projects. This makes it less flexible and slower to implement compared to monetary policy, for example.

Fiscal Policy Is Typically