Which one of the following reduces the likelihood that real-world fiscal policy will promote economic stability?
A) Policy planners do not know whether a tax cut is expansionary or restrictive.
B) Policy makers need to know what economic conditions will be like 6 to 18 months into the future, and this is extremely difficult to forecast accurately.
C) Policy planners are reluctant to implement expansionary fiscal policy even during a serious recession.
D) Public choice theory suggests that elected political officials will generally favor restrictive fiscal policy.

Question

Quizplus · Accepted Answer

Forecasting future economic conditions accurately is challenging, making it difficult for policymakers to implement timely and effective fiscal policies.

Which One of the Following Reduces the Likelihood That Real-World