Asked by Diamondz R-blissful on May 06, 2024
Verified
Fiscal policy is difficult to implement quickly because
A) it requires political negotiations.
B) much of government spending is nondiscretionary and cannot be changed.
C) increases in tax rates affect consumer spending gradually.
D) it requires political negotiations, and much of government spending is nondiscretionary and cannot be changed.
E) it requires political negotiations, and increases in tax rates affect consumer spending gradually.
Fiscal Policy
A government's strategy in managing its taxes and spending to influence the nation's economy.
Nondiscretionary
Relating to expenditure or investment decisions bound by specific rules or criteria, not subject to personal judgment or preference.
Political Negotiations
The process whereby representatives of groups or states with differing interests meet to discuss and attempt to resolve conflicts by reaching agreements.
- Identify the challenges in implementing fiscal policy.
Verified Answer
Learning Objectives
- Identify the challenges in implementing fiscal policy.
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