Questions
Questions

ECN 001B B01-B04 FQ 2025 Final Examination

Single choice

Which of the following has been cited by economists as a drawback of fiscal policy in comparison to monetary policy?

Options
A.Lags involved in the implementation of the policy.
B.Crowing out of private sector borrowing.
C.Crowding out of real resources.
D.All of the above.
E.None of the above
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Step-by-Step Analysis
To analyze the question, we need to assess what economists cite as drawbacks of fiscal policy relative to monetary policy. Option 1: 'Lags involved in the implementation of the policy.' This is a common critique: fiscal policy often faces political and administrative delays from recognition to passage to implementation, which can blunt timely stabilizat......Login to view full explanation

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