Which of the following are likely to limit the effectiveness of fiscal policy in the real world?
A. The crowding out effect.
B. Time lags between the recognition of a macro problem and the implementation of corrective measures.
C. Political considerations which could alter the content and timing of fiscal policy.
D. All of the above.
Answer:D
Which of the following are likely to limit the effectiveness of fiscal policy in the real world?
A. The crowding out effect. B. Time lags between the recognition of a macro problem and the implementation of corrective measures. C. Political considerations which could alter the content and timing of fiscal policy. D. All of the above.