During which time will fiscal policy be the most effective?
A) normal times
B) times of war
C) in the middle of expansions
D) times of stagflation

Question

Quizplus · Accepted Answer

Fiscal policy is most effective during times of war because it allows the government to quickly increase spending and stimulate the economy. During times of war, there is often a need for increased government spending to support military efforts, which can result in a boost to the overall economy. Additionally, during times of war, there is often an increased need for jobs, and increased government spending can help create new jobs and reduce unemployment.

During Which Time Will Fiscal Policy Be the Most Effective