ich of the following is NOT the limitation to the use of discretionary fiscal policy to stabilize the economy? ect one or more: changes in government purchases and tax rates have a small effect on interest rates the fine-tuning is very costly and may result in a destabilizing effect changes in government purchases and tax rates have a small effect on aggregate demand

ich of the following is NOT the limitation to the use of discretionary fiscal policy to stabilize the economy? ect one or more: changes in government purchases and tax rates have a small effect on interest rates the fine-tuning is very costly and may result in a destabilizing effect changes in government purchases and tax rates have a small effect on aggregate demand

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Which of the following is NOT the limitation to the use of discretionary fiscal policy to stabilize the economy?
Select one or more:
O changes in government purchases and tax rates have a small effect on interest rates
the fine-tuning is very costly and may result in a destabilizing effect
O changes in government purchases and tax rates have a small effect on aggregate demand
O the political process can be slow, which means that it is challenging to make fiscal policy actions in a timely way

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