All of the following make the use of fiscal policy less attractive except
A)that it cannot be effective unless it is accommodated with expansionary monetary policy.
B)the substantial margin of error in the value of the multiplier.
C)the legislative lag, which is the time it takes for Congress and the President to pass and implement the measure.
D)the crowding out effect, which is the decrease in private spending that occurs due to increased government spending.

Question

Quizplus · Accepted Answer

Fiscal policy can still be effective without being accompanied by expansionary monetary policy, although the two can complement each other. The other options (B, C, D) are all drawbacks that make fiscal policy less attractive.

All of the Following Make the Use of Fiscal Policy