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In January 2009, the President Submitted a Bill to Congress

Question 197

Multiple Choice

In January 2009, the President submitted a bill to Congress in order to stimulate the economy and increase employment. The legislation was passed in March 2009, and the spending occurred from June 2009 to March 2011. As a result


A) the full effect of the fiscal policy change would not be felt until after March 2011 because of the effect time lag.
B) the full effect of the fiscal policy change would not be felt until after March 2011 because of the recognition time lag.
C) the full effect of the fiscal policy change would be felt by March 2011 because people anticipated the spending and changed their behavior accordingly.
D) the full effect of the fiscal policy change would be felt when the last of the funds were spent by the government.

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