Which of the following is NOT a valid criticism of discretionary fiscal policy?
A) Implementation of fiscal policy is sometimes difficult.
B) Time lags in fiscal policy are long.
C) Fiscal policy works only during periods of stagflation.
D) Fiscal policy often affects only current income, but many economic decisions are made on the basis of permanent income.

Question

Which of the following is NOT a valid criticism of discretionary fiscal policy?  
A) Implementation of fiscal policy is sometimes difficult. 
B) Time lags in fiscal policy are long. 
C) Fiscal policy works only during periods of stagflation. 
D) Fiscal policy often affects only current income, but many economic decisions are made on the basis of permanent income.

Quizplus · Accepted Answer

Fiscal policy can work during periods of recession as well as inflation, not just stagflation.

Which of the Following Is NOT a Valid Criticism of Discretionary