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A Limitation on Fiscal Policy Is Time

Question 109

Multiple Choice

A limitation on fiscal policy is time.Which of the following does not impact the timeliness of fiscal policy?


A) It takes time to recognize that the economy is in trouble.
B) It will take time to develop a policy strategy and for Congress to pass it.
C) It will take time for the president to sign the policy measures into law.
D) It will take time for the policy to be implemented and for the many steps in the multiplier process to unfolD.The timeliness of fiscal policy depends on the ability to recognize a sustained trend toward a weakening economy,the ability to design and pass legislation,and the time for the policies to take effect.Once Congress passes legislation,it rarely takes time for the president to approve and sign the act.

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