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.
Correct Answer:
Verified
Q192: Discretionary fiscal policy
A) may not have desired
Q193: To the extent that the political process
Q194: The amount of time it takes the
Q195: The time required to collect information about
Q196: The period between the implementation of a
Q198: The action time lag is the time
Q199: The effect time lag is the time
Q200: The amount of time that it takes
Q201: Automatic stabilizers are
A) provisions that cause changes
Q202: When there is an interval between when
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