Because Congress decides on the federal goverment's budget during the year prior to when it will...
Because Congress decides on the federal goverment's budget during the year prior to when it will take effect, the tax laws and spending programs embodied in the budget _______________ once they are in place. Because of this, the implementation lag for fiscal policy is ______________ .
A. are hard to change; often quite long.
B. are easy to change; often quite long.
C. are hard to change; usually very short.
D.are easy to change; usually very short.
Homework Answers
Answer
Option A
A. are hard to change; often quite long.
The tax laws and spendings would need many sanctions if it needed to change afterward so it hard to change and the discretionary policies take long to effect as the adaptive expectation not works with it.
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Because Congress decides on the federal goverment's budget
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