A problem with using fiscal policy to fine-tune the economy is that
A) it takes time for policymakers to agree on the appropriate fiscal policy.
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

Fiscal policy decisions require time for policymakers to agree on the appropriate strategy, making it difficult to fine-tune the economy. Additionally, implementation of fiscal policy can also take time, which can delay the impact on the economy.

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