The use of fiscal policy to stabilize the economy is limited because
A) changes in government spending and tax rates have a small effect on interest rates.
B) the Internal Revenue Service (IRS) resists changes in tax rates because of all the changes they would have to make to the tax code.
C) changes in government spending and tax rates have a small effect on aggregate demand.
D) the legislative process can be slow, which means that it is difficult to make fiscal policy actions in a timely way.
D
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Sustained economic growth in the U.S. has been primarily a product of which of the following factors?
(a) War and exploitation of natural resources (b) Capital accumulation, increases in capital and labor productivity, and technological advancements (c) Restricted trade (d) Government policies and market interventions
If a regulatory board wanted to make sure that a natural monopoly earned a normal rate of return, it should set price which is equal to: a. marginal cost
b. average fixed cost. c. average variable cost. d. average total cost.
The phenomenon that explains the interdependence of water resources and the natural movement of water from the atmosphere to the surface, to beneath the ground, and back to the atmosphere is the
a. estuarial cycle c. hydrologic cycle b. runoff process d. watershed progression
Using time-series data, the demand function for a profit-maximizing monopolist has been estimated asQd = 142,000 - 500P + 6M - 400PRwhere Qd is the amount sold, P is price, M is income, and PR is the price of a related good. The estimated values for M and PR in 2014 are $25,000 and $200, respectively. The short-run marginal cost curve for this firm has been estimated as:MC = 200 - 0.024Q + 0.000006Q2Total fixed cost is forecast to be $500,000 in 2016. The forecasted demand function for 2016 is:
A. Qd = 150,000 - 2,000P B. Qd = 212,000 - 500P C. Qd = 200,000 - 2,000P D. Qd = 80,000 - 500P E. Qd = 110,000 - 500P