A problem with using fiscal policy to fine-tune the economy is that
A)agreeing on the appropriate fiscal policy is time consuming.
B)fiscal policy impacts the economy too fast.
C)fiscal policy impacts only urban areas of the nation.
D)fiscal policy impacts only the largest states in the nation.

Question

Quizplus · Accepted Answer

Agreeing on the appropriate fiscal policy can be a time-consuming process that may involve political debates, negotiations, and compromise. Therefore, it may not always be feasible to implement fiscal policy in a timely and effective manner to fine-tune the economy. Moreover, fiscal policy tends to have a lagged effect on the economy, meaning that it may take some time for the policy to produce its desired impact.

A Problem with Using Fiscal Policy to Fine-Tune the Economy