Which of the following is NOT a major limit to the effectiveness of fiscal policy?

Question

Quizplus · Accepted Answer

A multiplier effect is in fact a major factor in the effectiveness of fiscal policy, as it amplifies the initial impact of changes in spending and taxation. Choices A, B, and C are all major limits to the effectiveness of fiscal policy, as a single increase in spending may not be enough to stimulate the economy, the crowding out effect can undermine the impact of fiscal policy, and fiscal policy may not be very effective in addressing supply-side shocks.

Which of the Following Is NOT a Major Limit to the Effectiveness