When fiscal policy is used, time lags are variable and last anywhere from
A) one to three weeks.
B) one to three months.
C) one to three years.
D) one to three decades.

Question

Quizplus · Accepted Answer

Fiscal policy involves government spending and taxation decisions, which can take a significant amount of time to implement and for their effects to be fully realized in the economy, often ranging from one to three years.

When Fiscal Policy Is Used, Time Lags Are Variable and Last