3. Fiscal policy can be an inappropriate macroeconomic stabilization tool, since A) it has a larger outside lag than monetary policy B) it may have side effects that can distort decisions in the private sector C) it will always involve a loss of tax revenue for the government D) it has no short-run effects E) none of the above
3. Fiscal policy can be an inappropriate macroeconomic stabilization tool, since A) it has a larger outside lag than monetary policy B) it may have side effects that can distort decisions in the private sector C) it will always involve a loss of tax revenue for the government D) it has no short-run effects E) none of the above
Chapter11: Fiscal Policy
Section: Chapter Questions
Problem 1.7P
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